Analyst Note| Michael Field, CFA |
Recruitment leader Adecco turned out a reasonable first-quarter update, following hot on the heels of peer Randstad which reported just a couple of weeks earlier. Organic revenue growth of 2% year over year, trailed that of Randstad, which reported growth north of 6%. However, EBITA margins, excluding one-offs, rose to 4.2%, 50 basis points ahead of Randstad, and 60 basis points higher than where no-moat Adecco stood for full-year 2020. While we will be adjusting our near-term forecasts on the back of this update, we do not expect this to have a material effect on our CHF 63 fair value estimate. We see modest upside from the prevailing share price.