NEW YORK (AP) — The next few years could be tough for staffing companies that profit from new hiring, but a few firms may prosper amid the tepid economic recovery, according to a report Monday from Citi Investment Research & Analysis.
Citi analyst James Samford said in a note to clients that he is initiating coverage on two staffing companies, while downgrading his rating on a third. There is potential for these companies to profit even with historically weak job growth, Samford said.
Samford dropped his share price targets on three of the nation's biggest staffing companies, for simple reasons. The companies make money by finding employees for their clients, often to fill temporary jobs. With the job market stubbornly weak, there are fewer opportunities for those companies to place the legions of Americans seeking jobs so there are fewer chances for placement companies to earn money.
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