Analyst Sees Staffing Markets Stabilizing

HARTFORD, Conn. (AP) — Shares of Manpower Inc. fell Thursday as an analyst downgraded the staffing company, saying its growth prospects are unclear.

Citi Investment Research Analyst Ashwin Shirvaikar downgraded the Milwaukee company to "Hold" from "Buy" and raised his price target to $61 from $50.

"Stabilization across its markets seems to continue, but visibility toward eventual growth remains very limited," he said in a client note late Wednesday. "We believe some time on the sidelines may allow for the earnings to catch up to the stock and/or provide greater certainty and clarity toward the eventual recovery."

Manpower's shares have risen about 140 percent since its low point March 9.

Shirvaikar upgraded Kelly Services Inc. to "Hold" from "Sell," saying he is more confident that the Troy, Mich., staffing company is seeking additional cost reductions.

"Previously, we were concerned about KELYA's large losses and the unclear stance on further cost actions," Shirvaikar said, referring to Kelly by its stock symbol. "We now see a clearer path to profitability and have adjusted our estimates accordingly."