UPDATE: Deutsche Bank Initiates Coverage on TriNet Group with Buy Rating, $24 PT on Expected Market Share Gains

In a report published Tuesday, Deutsche Bank analyst Paul Ginocchio initiated coverage on

with a Buy rating and $24.00 price target. In the report, Deutsche Bank noted, “We believe TriNet is a market share gainer in the 6-8% growth PEO industry due to its segmentation strategy (three service offerings and vertical sales) and fast growth of its salesforce. In the coming quarters, TriNet should also benefit from an acceleration in SMB hiring, which has been relatively weak this cycle, a more seasoned sales force, along with the continued tailwind from ACA. With mid-teens rev growth, 33% EBITDA margins and rising, great cash conversion, and an attractive P/FCF multiple, we rate TriNet a Buy.” TriNet Group closed on Monday at $21.87.