Jefferies Upgrades SPIE to Buy and Adecco to Hold

Jefferies upgraded SPIE to 'buy' from 'hold' and lifted Adecco to 'hold' from 'underperform' this week. The firm cited revised earnings estimates and improved growth trajectories for both companies. These changes reflect how analysts view the European industrial and staffing sectors as market conditions change.

"The upgrade for SPIE reflects an underappreciated exposure to data-center build-outs and a strong growth outlook extending into 2027," analysts at Jefferies noted in a research update.

SPIE’s Growth and Infrastructure Focus

Jefferies set a new price target of €55 for SPIE, reflecting confidence in the company’s role in infrastructure development. The company is expanding its footprint in the energy transition sector, in addition to its data-center exposure.

SPIE recently announced an agreement with the Institute for Federal Real Estate in Germany to assess the photovoltaic potential of more than 300 buildings. This project is part of a push toward sustainable infrastructure, with implementation scheduled to continue through 2030.

Staffing Sector Divergence

Adecco received an upgrade to 'hold' with a new price target of 20.50 Swiss francs. Jefferies analysts indicated that the move was due to the firm’s earnings estimates realigning with consensus expectations.

The brokerage remains cautious on the staffing industry. Jefferies maintained 'underperform' ratings on both Randstad and Hays. Analysts cited persistent structural challenges within the staffing market, noting that these headwinds may limit earnings growth for these companies despite recent gains in their share prices.

Why This Matters

This re-rating highlights a shift in investor sentiment toward companies with infrastructure exposure compared to those reliant on the cyclical staffing market. As European firms navigate high interest rates and labor market volatility, the ability to secure long-term contracts, such as SPIE’s multi-year German real estate initiative, is becoming a differentiator in valuation models compared to the staffing sector.