Reduce exposure to staffing sector, says Seymour Pierce
25 September 2012
Investment bank and stockbroker Seymour Pierce is recommending investors lessen their exposure to the staffing sector.
Tue, 25 Sep 2012
Investment bank and stockbroker Seymour Pierce is recommending investors lessen their exposure to the staffing sector.
In an investors note, the company says: “The staffing sector is trading on a prospective P/E of 17.2x. This is too high in our view, given decelerating net fee income growth in recent quarters. Furthermore, our analysis of global recruitment trends suggests that we haven’t turned the corner yet.
“It is too early to buy the early cycle recruitment companies. We are moving our sector stance to underweight but continue to recommend the smaller capitalisation stocks.”
Investment bank and stockbroker Seymour Pierce is recommending investors lessen their exposure to the staffing sector.
In an investors note, the company says: “The staffing sector is trading on a prospective P/E of 17.2x. This is too high in our view, given decelerating net fee income growth in recent quarters. Furthermore, our analysis of global recruitment trends suggests that we haven’t turned the corner yet.
“It is too early to buy the early cycle recruitment companies. We are moving our sector stance to underweight but continue to recommend the smaller capitalisation stocks.”
