RBC Capital Markets upgrades its opinion on Adecco from 'sector perform' to 'outperform', now perceiving sufficient upside potential relative to its mid-cycle price target, maintained at CHF 39.

"First-quarter results were broadly in line, and although we are cutting our EPS guidance by 5-6%, we believe we are now approaching the end of the down cycle", says the Canadian broker.

In addition, he expects the deleveraging of the Swiss human resources services group in the second half of the year and into 2025 to be a positive catalyst, and points to a dividend yield of 7.8%, now the highest in the sector.

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