UPDATE: Bank of America Raises PO to $43 on ManpowerGroup on Payroll Tax Cut
Bank of America reiterated its Neutral rating on ManpowerGroup (NYSE: MAN) but raised its price objective from $42 to $43.
Bank of America commented, "Changes to payroll taxes are expected to enhance gross margin in France (27% of revenue) by 126bp relative to our previous forecast. We assume that MAN will be able to retain half of this tax benefit, with the other half passed along to clients in the form of lower bill rates. As a result, we are lowering our revenue forecast slightly but increasing gross and operating margins by 19bps for MAN overall in 2013 and 2014. This yields a 9% increase to 2013E and 2014E EPS. We do not believe the payroll tax benefit is reflected in consensus ($2.87 for 2013)."
ManpowerGroup closed at $37.95 on Tuesday.
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