Trinet's Tender Offering Creates A Path For Share Buyback & Dividend Boost: Analyst
Portfolio Pulse from Lekha Gupta
Needham analyst Kyle Peterson has raised the price target of Trinet Group Inc. (TNET) to $135 from $120 and maintained a Buy rating. Peterson expects TNET's CIE to remain muted for the next few quarters due to SMBs' cautious hiring. However, he believes that good execution from the sales force will boost growth. TNET has recently conducted a tender that will retire around 16% of its shares and plans to return about 75% of free cash flow to shareholders, which Peterson believes will result in additional buybacks and a possible dividend boost.
September 11, 2023 | 6:12 pm
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Trinet Group's price target has been raised by Needham analyst Kyle Peterson, who maintains a Buy rating. The company's recent tender, which will retire around 16% of its shares, is expected to lead to additional buybacks and a possible dividend boost.
The analyst's positive outlook on Trinet Group, coupled with the company's recent tender and plans to return a significant portion of free cash flow to shareholders, could lead to a positive impact on the company's stock. The potential for additional share buybacks and a dividend boost could make the stock more attractive to investors, potentially driving up its price in the short term.
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