Jefferies Raises On Assignment PT After Company Analyst Day
Analysts at Jefferies on Friday, March 28, 2014, released a new price target regarding On Assignment Inc. (NYSE: ASGN).
Equity analyst Dan Dolev led the research and raised the firm's price target from $39.00 to $42.00. The stock is currently trading at $36.14 per share as of Friday, March 28, 2014. The firm has cited numerous reasons related to its price target decision.
“On Wednesday, ASGN held an Analyst Day in New York to discuss its 5-year financial goals. With a strong #2 position in the disruptive fast growing IT Staffing market, and a recent push into the high margin perm recruiting business, we believe the targets are achievable and even beatable, helped by higher than expected M&A, continuous evaluation of the portfolio, and a strong management track record of delivering on long-term targets. BUY. Raising PT to $42”
Jefferies cited an additional four views that it believes are noteworthy:
• IT Staffing accelerating in 2014 would imply an inflection point as it continues to bifurcate from IT Services. • Perm is good, especially for margins, but could there be too much of a good thing? • Future M&A is important, but pruning is also part of the ASGN story: so how stable is the current portfolio? • The 5-year plan includes $240m revenue contribution from M&A, which seems conservative; it also implies no major economic slowdown.
Jefferies also sees a 15 percent upside to On Assignment.
Shares of On Assignment are up 42.79 percent or $10.83 per share year-to-date.
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