ASGN tumbles 35% after Truist cuts rating following Q1 miss
ASGN shares fell 35% premarket after Truist downgraded the stock from Buy to Hold, lowering the price target from $60 to $33. The downgrade follows a Q1 earnings miss, attributed to slower-than-expected enterprise IT project ramp-up, impacting gross and EBITDA margins. Analysts express concerns that AI may disrupt demand for high-margin software implementation and white-collar jobs, predicting a potential 15-25% downside in 2027 EBITDA if the transition to consulting proves disruptive.
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