Manpower Operations Strong

We maintain our Buy rating on Manpower Inc. (MAN - Analyst Report), world leader in the employment services industry. The company's margins continue to expand and the share repurchase program continues. In addition, the Right Management unit appears to have turned the corner.

Moreover, in the first quarter, the management made three strategic acquisitions in order to grow and expand its recruitment process outsourcing (RPO) business and expand its global network, especially in emerging markets. Manpower continues to execute its key strategies of elevating and broadening client relationships while improving efficiency through speed and quality.

Therefore, due to strong operating performance and attractive valuation, the Buy rating is maintained. Strong growth in the outsourcing industry over the next three-to-five years is expected, as corporations continue to focus on core competencies and reduce growing costs associated with in-house support functions.

Manpower is currently trading at 13.1 times trailing 12 month earnings. Over the last five years, Manpower stock has traded in a P/E range of 11 to 30. However, the stock has traded at a P/E multiple above 24 only during periods of cyclical earnings decline. The company has generated strong revenue and earnings growth since 2006 through the first quarter of 2008. The target of $77.25 is based on a 15 P/E on trailing 12 month earnings

Read the full analyst report on MAN