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Deutsche Bank Initiates On Assignment Shares With A Buy Rating

Deutsche Bank Initiates On Assignment Shares With A Buy Rating

Deutsche Bank’s Kevin McVeigh believes the IT staffing space is benefiting from “continued technology innovation, required implementations, system upgrades, and maintenance.”

McVeigh initiated coverage of On Assignment, Inc. (NYSE: ASGN) with a Buy rating and price target of $44.

Gaining Share

“As we assume there will be less rather than more macro uncertainty in the months to come, we rate the ASGN stock a Buy due its attractive end markets, client mix, durable buyback, reasonable expectations, and attractive relative valuation,” the analyst explained.

The company has been gaining share of the IT staffing market, which the analyst believes will become one of the “healthiest disciplines” over the next few years, regardless of the economy.

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“The scarcity of IT talent also provides some cushion to growth even in an underwhelming GDP environment,” McVeigh stated, adding that On Assignment had high exposure to favorable end markets.

Strong Management, Impressive Execution

The analyst also pointed out that the company’s strong management has been ensuring impressive execution, which along with the hirings in 2015 is expected to drive continued outperformance as compared to its peers, “ultimately driving strong top and bottom-line results.”

Following the acquisition of Creative Circle in 2015 and Apex Systems in 2012, McVeigh believes the unique value proposition of Creative Circle, with the operational excellence of Apex Systems, would drive value for On Assignment over time.

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Latest Ratings for ASGN

Feb 2021Credit SuisseMaintainsNeutral
Jun 2020SunTrust Robinson HumphreyMaintainsBuy
May 2020BairdMaintainsNeutral

View More Analyst Ratings for ASGN
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