UPDATE: Deutsche Bank Initiates SFN Group at Buy (SFN)

Deutsche Bank is out with its report on SFN Group SFN, initiating SFN at Buy with an $18 PT. In a note to clients, Deutsche Bank writes, "SFN is a different agency than we knew 10 years ago and it has significantly changed and improved over the last three years. Part of the opportunity is that the market has yet to fully update its historical view, as shown by the nearly 50% valuation discount versus peers on a 2011E P/FCF. The other part of the opportunity is SFN delivering on its margin potential due to both higher margin acquisitions and SFN's newly found operating discipline. We believe as SFN delivers operationally, that the PE and P/FCF multiple will expand further." Shares of SFN closed Monday at $13.29, down 1.41% from Friday's close.