Analyst Note| Joshua Aguilar |
Manpower’s third-quarter results were in line with our expectations, but growth remained constrained by tight labor markets and supply chain challenges. In Manpower’s key markets, people have not returned to the workforce fast enough to meet demand. In the automotive sector, global supply chain constraints have weighed down hiring due to chip shortages. Nonetheless, we believe these issues are transitory and that Manpower is well positioned to meet demand as economic activity rebounds. We are raising our fair value estimate to $91 from $89 primarily due to the time value of money and marginally increased midcycle assumptions.