Bouncing Back Like a True Blue: Analyst Sees Upswing in Staffing Star's Fortunes

BMO Capital Markets analyst Jeffrey M. Silber upgraded TrueBlue Inc TBI to Outperform from Market Perform at an increased price target of $20 from $18.
The analyst is bullish on the stock following recent industry data that shows commercial staffing decline getting "less worse" and better than the volume decline in professional staffing.
With business bouncing back post-pandemic, TBI planned not to curtail cost during the current downturn and aims to capitalize on the potential temporary demand recovery that typically happens during layoff periods.
Although the company has reduced some costs within PeopleScout and PeopleManagement segment, the analyst believes this may result in operating deleveraging this year.
Silber expects revenue of $2.01 billion and core EPS of $0.97 (consensus: $0.79) in 2023.
The analyst estimates revenue of $2.07 billion and core EPS of $1.27 (consensus: $1.53) in 2024.
Price Action: TBI shares are trading higher by 10.2% at $17.65 on the last check Monday.