** BNP Paribas Exane sees cyclical progress for European recruitment companies as staffing markets that typically recover first are moving from "stabilisation to recovery", reflecting improving momentum in the U.S.

** It says gross-margin weakness in recent quarters reflects a normal cyclical pattern rather than a structural phenomenon and it will reverse in the coming quarters

** The broker raises 2026-2027 earnings per share (EPS) estimates by 8%-9% annually, and sees its forecasts 3% and 10% above consensus for 2026 and 2027, respectively

** It ups Adecco ADEN.S to "outperform" from "neutral" on potential improvement in the next quarters

** BNP retains its rating changes at MAN (*outperform) and Randstad (*neutral) on less upside potential for both companies, but raises price targets on both stocks

** Adecco shares jump around 5%, topping Switzerland's mid-cap index .SMIM as Randstad is slightly up around 1%