UPDATE: Bank of America Upgrades ManpowerGroup to Buy, Raises PT Following Encouraging Signs from Paris Trip

In a report published Wednesday, Bank of America analyst Sara Gubins upgraded the rating on

from Neutral to Buy, and raised the price target from $71.00 to $85.00. In the report, Bank of America noted, “Our recent Paris staffing trip confirmed a stabilizing environment in France (26% of MAN revenue), with cautious optimism around a recovery. BofAML economists forecast slowly improving GDP in Europe. PMIs indicate expansion in most relevant markets (France is an exception). With 63% of its revenue coming from Europe, MAN shares are highly levered to expansion in Europe. Our MAN-weighted GDP model would suggest 8% revenue growth in 2014. We, and consensus, are more cautious at 4%. We continue to forecast a 1% revenue decline in France in 2014. Each 100bp faster revenue growth for MAN would add $0.15 to EPS, or 3%, based on a 10% incremental margin.” ManpowerGroup closed on Tuesday at $73.11.