BUZZ-Randstad to benefit from improving labour market, Bernstein double upgrades

Bernstein upgrades Randstad RAND.AS to "outperform" from "underperform", saying the world's biggest staffing firm can benefit from the improving yet weak labour markets

The brokerage says North America (about 25% of Randstad's gross profit) and temps (about 70% of gross profit) should lead any market recovery, with gross margins to follow

It notes that PMIs are improving in the U.S. since October and in Europe since January, and points to stabilising job postings in the U.S., France, Germany and Britain

It says U.S. temp numbers appear to have troughed in October, with the ratio of U.S. job openings to unemployment claims rising since then

Randstad's number of temps at work has also troughed, Bernstein adds

It also notes the stock's valuation is close to all-time lows, with risk now skewed to the upside; raises PT by 35% to 50 euros

($1 = 0.9552 euros)