Recruitment Giant Adecco Back on the Market After a Strong 2021

Recruitment leader Adecco didn’t quite recover all the ground lost during the pandemic, but it made some solid headway over the course of 2021, with organic revenues up 9%, and operating margins up 100 basis points, putting it firmly back on track. While peer Randstad invested early and positioned itself for a swift recovery, Adecco was slightly slower to the ball. That being said, we believe the firm is in a strong position to push on from here, with the company having recruited materially over the year, with full time employees up 8% year over year. We don’t expect to make any material adjustments to our numbers on the back of this update, and reiterate our EUR 63 fair value estimate. We see attractive upside potential from here.