Table of Contents
At best fair value on a 12m basis ..................................................... 3
Still wary of an 01/02-esque false rally ......................................................................................3
What’s happening in the temp markets? ........................................ 8
Bottoming out but probably some negative mix shifts .............................................................8
What’s happening in the perm markets? ...................................... 15
Most surprising has been the earlier than expected leveling off in perm markets..................15
What’s happening in outplacement? ............................................. 21
An important driver of gross margins .....................................................................................21
What’s happening to gross margins? ............................................ 22
We remain firmly of the view that pricing will weaken further................................................22
What might affect mid cycle margins? .......................................... 26
Michael Page best placed – all the others have structural issues ...........................................26
Valuations and earnings changes .................................................. 32
Market looking to the mythical mid-cycle ...............................................................................32
Adecco (Sell, TP CHF41).................................................................. 39
Outplacement, Japan and clerical weakness all to weigh on sentiment.................................39
Randstad (Sell, TP