Adecco - AI and digitalization at the workplace

Notable trends such as talent scarcity, changing employee demands, mental wellness, and the impact of digitalization and AI pose significant challenges for employers. Adecco has positioned its service portfolio to address these trends and support its customers in navigating the challenges.

Under its new leadership team, Adecco refined its strategy just over a year ago and has delivered increasingly convincing results in recent quarters. Organic revenue growth is outpacing peers and profitability is rising as the business mix shifts towards higher margin services, cost savings take effect, productivity improves and synergies are extracted.

Adecco generates consistent cash flow through cycles and can sustain its progressive dividend policy with a current yield of 6.0% while further reducing balance sheet leverage. On the back of improving financials and successful strategy implementation our Swiss Equity Research Team raises the price target to CHF 50 (42) and upgrade the stock to Buy (Hold).

A possibility to invest in a positive outlook on Adecco can be achieved with a Capped Bonus Certificate as it allows a participation on the upside until a cap level that is set at the new price target and in addition offers a Bonus Level which is paid out at maturity if the US Barrier has not been breached over the lifetime of the product.

Source: Vontobel Swiss Equity Research (2023)

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