Staffing firm shares tumbled Friday in a weak overall stock market, undercut by concerns about weak job growth and a downgrade in the sector, according to an Associated Press article.
While it seems August job growth didn’t fall from July levels, previous expectations of stable economic growth through the second quarter of next year don’t seem realistic any more, Deutsche Bank Analyst Paul Ginocchio said in a note to investors.
Ginocchio cut his rating for TrueBlue Inc. to “Hold” from “Buy,” saying the staffing firm gets all of its business from light industrial companies, which seem to be experiencing some the weakest job growth, the AP reported.
He also cut his 2012 earnings estimates and price targets for “Buy” rated ManpowerGroup and KForce Inc., along with “Hold” rated Resources Connection Inc. and Robert Half International Inc. He cited expectations of “very low” economic growth through the first half of next year, the AP reported.
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