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.

Continue Reading for Free

Register and gain access to:

  • Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.