Manpower stock price target raised to $51 from $48 at BMO Capital

BMO Capital raised its price target on Manpower Inc. (MAN) to $51, maintaining a Market Perform rating, citing solid forward guidance and easing geopolitical concerns. This comes despite the staffing company reporting an unexpected Q2 2025 EPS miss of -$1.44, significantly below projections, though revenue exceeded expectations at $4.52 billion. Management anticipates Q3 EPS between $0.77-$0.87 and potential revenue stability or slight decline, as it continues restructuring efforts amidst a positive global hiring outlook.

Analysis

ManpowerGroup (MAN) presents a mixed but cautiously optimistic profile, with forward-looking indicators outweighing a recent significant earnings miss. The company reported a substantial second-quarter 2025 loss with an EPS of -$1.44, starkly missing the projected $0.68, which appears linked to ongoing restructuring and digital transformation efforts, particularly in Northern Europe. However, this was counterbalanced by a revenue beat, with Q2 revenue reaching $4.52 billion against a $4.35 billion forecast. Analyst sentiment is turning positive, evidenced by BMO Capital raising its price target to $51.00 and five analysts revising earnings estimates upward. This optimism is fueled by solid forward guidance that exceeded consensus and easing geopolitical concerns. Management projects a return to profitability in the third quarter, with an EPS forecast between $0.77 and $0.87, and expects revenue to be stable or decline slightly. A key bright spot is the U.S. market, where the Manpower brand grew 9%, signaling robust demand in the blue-collar staffing segment.

Key Decisions for Investors

• Investors should look past the anomalous Q2 2025 earnings loss, likely driven by restructuring charges, and focus on the company's forward guidance, which signals a return to profitability in Q3.
• The successful execution of restructuring in Northern Europe and the realization of efficiencies from AI and digital investments are the primary catalysts; these operational milestones should be monitored closely.
• Given the positive analyst actions, including BMO's raised price target of $51, and the stock's current valuation, there may be a value opportunity for investors confident in the company's ability to execute its turnaround strategy.