Truist Securities raised its price target on ASGN Inc. (NYSE: ASGN) to $60.00 from $50.00 on Tuesday, while maintaining a Buy rating on the shares. ASGN is trading at $50.74, and InvestingPro data referenced in the analysis indicates the stock appears materially undervalued relative to its Fair Value estimate. Across analysts, price targets span a range from $42 to $63.
The brokerage singled out demand for artificial intelligence as a key driver behind the revision. According to the note, ASGN's client base is showing increased interest in assistance with AI implementation into operational workflows. Truist argued that companies understand scaling AI to deliver measurable benefits requires substantive work, creating an opportunity for firms like ASGN to provide that implementation and integration expertise.
Financial health and segment dynamics
InvestingPro assigns ASGN a "GOOD" overall Financial Health Score of 2.52 in the firm's assessment cited by Truist. The analyst house also pointed to ASGN's strategic expansion of its Commercial Consulting business, a push supported by its recent purchase of private company Quinnox. Truist's model projects that Commercial Consulting could make up roughly 36% of ASGN's revenue by 2026, up from 16% in 2021, signaling a material shift in the company's revenue mix over the medium term.
On the government side, Truist noted the company's ECS segment could see upside tied to the Trump Administration's emphasis on higher Defense spending. Defense, Intelligence and National Security accounts account for about 75% of ECS revenue, according to the brokerage's breakdown, which could orient that segment toward any increases in federal defense budgets.
Valuation and multiple commentary
Truist suggested there is room for multiple expansion over time. In its comparison, ASGN shares were trading at 7.4x 2026 EBITDA in Truist's view, versus roughly 12x for Government Services peers and about 12x to 14x for Commercial Consulting peers. The firm argued this gap implies potential upside if market sentiment and fundamentals converge.
Recent corporate actions and market reactions
ASGN announced a significant rebranding initiative to unify its six brands under the new name Everforth, with the transition expected in the first half of 2026. The company said the move aims to streamline operations and improve collaboration across its businesses. Alongside the rebrand, ASGN unveiled a $1 billion share buyback program intended to return capital to shareholders.
Other industry and analyst developments were also noted. Elastic entered a partnership with the Cybersecurity and Infrastructure Security Agency to develop a Security Information and Event Management as-a-Service platform, with a contract that could be worth up to $130 million over five years. On the ratings front, BMO Capital reiterated an Outperform rating on ASGN, citing the firm's ongoing shift toward IT services and continued optimism about its enterprise software offerings despite AI-related volatility in the stock.
In an additional, separately noted action, Truist had previously lowered its price target for ASGN to $50 while maintaining a Buy rating after the company exceeded financial targets at its Investor Day. The juxtaposition of both price-target movements was included in the reporting on analyst activity surrounding the company.
The collection of analyst commentary, corporate restructuring and capital return initiatives frames ASGN's near-term narrative around AI services demand, consulting growth and potential defense-related tailwinds, while valuation differentials with peers leave room for debate over future multiple re-rating.