Adecco shares look richly priced - Barron's
NEW YORK Aug 23 (Reuters) - Adecco SA's (ADEN.VX) share price looks rich following a 70 percent run-up since March for the Swiss company, the world's largest staffing agency, Barron's said in its Aug 24 edition.
While Adecco typically fares better when employment is rising, and posted second-quarter results that suggest the deterioration in the staffing environment has stopped, the current stock price "markedly discounts" improved results in 2010 and beyond, Barron's said.
It said even a small disappointment could hurt the stock, which traded Friday at 51.05 Swiss francs and fetches about 24 times projected 2010 earnings.
Recessions often end before employment levels bottom out. The newspaper said that a sustained recovery for Adecco is more likely in 2011 and beyond, and that it is "asking for a lot" to expect employment growth to come sooner rather than later.
Adecco did not immediately return a call seeking comment. The newspaper said Adecco did not return its call for comment.
(Reporting by Jonathan Stempel; editing by Gunna Dickson)
((jon.stempel@thomsonreuters.com +1 646 223 6317; Reuters Messaging: jon.stempel.reuters.com@reuters.net)) Keywords: ADECCO/
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