Lehman Brothers upgraded Manpower (MAN ) to buy from market perform.
Analyst Adam Waldo says his upgrade reflected improving fundamentals during the second quarter, and more attractive valuation after the stock's 20% drop since mid-May. Waldo says improving monthly data flows from the U.S. since late February, and improving flows from France since April, suggests that operations have passed the bottom in Manpower's two largest markets.
Waldo notes that light industrial/construction skills have been leading the upturn. While he thinks the 2003 Street consensus estimate of $2.06 earnings per share remains a tad aggressive, he says the current trading valuation of 19 times his new $1.90 forecast should provide sufficient room for solid relative share price performance.