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ADEN: Cautious Outlook Will Pressure Shares Despite Modest Margin Improvement

Automation And Demographic Decline Will Erode Staffing Margins

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ADEN
AnalystLowTarget
Not Invested
Published 02 Jul 2025

Update shared on 14 Dec 2025

Fair value Increased 2.54%
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AnalystLowTarget's Fair Value
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Analysts have raised their price target on Adecco Group modestly to approximately €19.03 from about €18.56. This reflects slightly improved profit margin expectations and a marginally lower discount rate, partly offset by more tempered revenue growth assumptions.

What's in the News

  • Adecco Group will host an Analyst and Investor Day, signaling increased engagement with the financial community and potential strategic updates (company event).
  • The company confirmed earnings guidance for the fourth quarter of 2025, expecting revenue growth to remain in line with the third quarter on an organic, trading days adjusted basis (company guidance).
  • Adecco Group appointed Valentina Ficaio as chief financial officer effective January 1, 2026, succeeding Coram Williams, who is leaving to become CFO at an automotive sector company in Germany (company announcement).

Valuation Changes

  • Fair Value increased modestly from €18.56 to €19.03 per share, reflecting a slightly higher intrinsic valuation.
  • The Discount Rate edged down slightly from 5.69 percent to 5.66 percent, indicating a marginally lower perceived risk or cost of capital.
  • Revenue Growth was reduced slightly from about 1.51 percent to 1.34 percent, signaling more cautious top line expectations.
  • The Net Profit Margin improved modestly from around 1.78 percent to 1.80 percent, pointing to somewhat better profitability assumptions.
  • The Future P/E ratio rose slightly from 9.24x to 9.41x, suggesting a marginal increase in the multiple applied to expected earnings.

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Disclaimer

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