Analyst Note| Joshua Aguilar |
No-moat Manpower reported fourth-quarter results on the lower end of its previous guidance. However, we don't expect to make meaningful changes to our $95 fair value estimate. Management released 2023 first-quarter EPS guidance of $1.66 at the midpoint, implying near-flat sequential growth compared with last year's first quarter EPS of $1.68. Despite the uncertain macroeconomic environment and competing in a highly cyclical and fragmented industry, Manpower's expertise in IT recruiting and its continual investments in technology give us confidence in our long-term thesis. We still think the stock has some modest upside, even as it trades in 3-star territory.