Tuesday, January 11, 2011

Manpower (NYSE:MAN) Better Positioned than Robert Half (NYSE:RHI) Says Barclays (NYSE:BCS)

Commenting on the staffing sector, Barclay (NYSE:BCS) said their top pick remains Manpower (NYSE:MAN), preferring them over Robert Half (NYSE:RHI) at this time.

Barclays said, "We expect continued fundamental improvement across the staffing space as 4Q'10 results are reported over the next few weeks, with strong momentum and a likely upside surprise at Manpower. Manpower (NYSE: MAN) remains our top pick in the Business & Professional Services space.

"We expect continued solid revenue trends across the temp staffing industry this quarter, with margins and earnings continuing their rebound off of trough levels. Over the next 2-3 years, we expect a dramatic rebound in industry earnings, which we believe would support solid share price appreciation. Manpower, which we rate Overweight, remains our top pick. We prefer MAN to Robert Half (NYSE: RHI) due to its earlier cycle mix and superior current fundamentals, broader geographic diversification, and more attractive valuation. We believe that MAN has significant upside potential over the next year, and also like it into the earnings report."

Manpower closed Monday at $66.20, gaining $1.46, or 2.26 percent. Robert Half closed at $31.98, up $0.25, or 0.79 percent.

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