Jefferies Upgrades SPIE to 'Buy,' Lifts Adecco to 'Hold' on Revised Forecasts

Analysts at Jefferies upgraded SPIE to "Buy" from "Hold," expressing renewed optimism about the French technical services group's growth prospects. The brokerage also raised its price target on the company to €55 from €50, suggesting a potential 28% upside from current trading levels.

SPIE Upgraded on Growth Outlook

Jefferies stated in a research note that it believes SPIE's organic growth is at a low point and poised to accelerate to 4%-5% in 2027-2028. The firm identified several key drivers for this expected recovery, including increased activity in German high-voltage grid work, easing headwinds in its French fiber and building solutions divisions, and what it called an "underappreciated exposure" to data center construction.

This outlook points to a 6%-8% compound annual growth rate (CAGR) in organic earnings per share (EPS), with the potential for 10%-15% growth when including mergers and acquisitions, according to Jefferies. Following a recent pullback in the share price, the brokerage noted that the stock, trading at 14 times fiscal 2026 price-to-earnings with an 8% free cash flow yield, now represents "great value."

Adecco Raised as Estimates Align

In a separate move, Jefferies upgraded the staffing firm Adecco to "Hold" from "Underperform" and significantly raised its price target to 20.50 Swiss francs from 13.50 francs. The change was primarily driven by Jefferies revising its own forecasts, which are now broadly in line with market consensus.

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The brokerage increased its adjusted EPS estimates for Adecco by an average of 3%, removing the previous discrepancy with consensus expectations. Jefferies' new price target implies a forward price-to-earnings ratio of about 8.5 times.

Cautious View on Staffing Sector

Despite the Adecco upgrade, Jefferies maintained a cautious fundamental view on the broader staffing sector. The firm warned that "persistent structural challenges" are likely to prevent the earnings growth needed to justify the sector's recent strong share-price performance, which it attributed mainly to a re-rating of valuation multiples.

Reflecting this caution, Jefferies reiterated its "Underperform" ratings on competitors Randstad and Hays, while maintaining a "Hold" rating on Michael Page. The firm's top picks in the wider Business & Employment Services sector include SPIE, Elis, Compass, and Experian.