SOURCE: Staffing 360 Solutions, Inc.

Staffing 360 Solutions, Inc.

May 31, 2017 08:30 ET

Stock Market Media Group Notes Midtown Partners & Co. Has Initiated Coverage on Staffing 360 Solutions with Buy Rating and $2 Price Target

NEW YORK, NY--(Marketwired - May 31, 2017) - Stock Market Media Group notes new research coverage in the month of May as New York investment bank, Midtown Partners & Co., LLC ("Midtown") has initiated coverage on Staffing 360 Solutions, Inc. (NASDAQ: STAF), an international staffing services provider pursuing acquisition targets in the finance, accounting, administrative, engineering and IT industries, with its published research report, which includes a Buy Rating and a $2 Price Target.

Read Midtown's report at:
http://midtownpartners.com/wp-content/uploads/Staffing-360-Solutions-Inc.pdf

Midtown's Director of Research, analyst William Relyea, said of the firm's initiation of coverage on Staffing 360 Solutions, "We base our price target on expectations for a resumption of accretive acquisitions which the company has used in the recent past to grow revenues, gross profit, EBITDA and Adjusted EBITDA. We think investors will become comfortable with the return to more rapid growth on a somewhat less dilutive basis and will be willing to pay up from the low current valuation as measured by multiples of revenues and gross profits."

Staffing 360 Solutions operates in the high-growth staffing industry where it is executing a global buy-and-build strategy through the acquisition of staffing organizations in both the United States and the United Kingdom. Globally, the staffing industry is estimated at $430 billion, and in Midtown's report, which was released to its clients and investors earlier this month, the firm highlighted a number of key areas for investors to consider when evaluating the company:

  • STAF has a highly-focused growth by acquisition strategy that through 6 acquisitions in the highly-fragmented staffing market achieved rapid growth with high client retention, strong recurring revenues and expanding aEBITDA from its beginning in 2013 to 2016.
  • Recent financings totaling $9 million by the Jackson Investment Group eliminated a prior financing that required significant near-term payments and reduced forward visibility. These investments should allow STAF to resume its program of accretive acquisitions in the temporary staffing industry.
  • The company's stated goal is to achieve $300 million in revenue run rate, up from $183.5 million for last year.

The report states that profitability at Staffing 360 Solutions seems likely to continue to improve. "As measured by EBITDA and adjusted EBITDA, STAF has been advancing towards profitability. Gross profit margins have been steady and operating expenses decreasing as a percentage of revenues."

Midtown's analyst says, "The entry of the Jackson Investment Group makes a very positive change in the outlook for STAF's prospects for returning to its "buy-and-build" acquisition strategy."

Read Midtown's report here:
http://midtownpartners.com/wp-content/uploads/Staffing-360-Solutions-Inc.pdf

About Midtown Partners & Co., LLC

Originally founded in May 2000, Midtown Partners & Co., LLC is an investment bank focused on private placement investment banking opportunities. The investment banking group at Midtown Partners & Co., LLC was founded on the premise that client relationships and industry focus are keys to the success of emerging growth companies. Such companies require investment-banking services from a firm with a unique understanding of the marketplace and the nature of these transactions. Additional information can be found at http://www.midtownpartners.com.

About Stock Market Media Group

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SEC RULE 17b

COMPENSATION DISCLOSURE

Section 17(b) of the 1933 Securities and Exchange Act requires publishers who distribute information about publicly traded securities for compensation, to disclose who paid them, the amount, and the type of payment. In order to be in full compliance with the Securities Act of 1933, Section 17(b), Stock Market Media Group is disclosing that it was compensated $860 for content development related to this research report by Staffing 360 Solutions, Inc. via a bank wire.

For more information: www.stockmarketmediagroup.com.

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