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In a note, the broker also cut Adecco S.A. to a 'sell', and left a 'sell' rating on Michael Page International.
The broker's update follows the latest quarterly Manpower Employment Outlook Survey by Manpower Inc..
Deutsche Bank said that although there has been a considerable de-rating of staffing stocks, it believes the market is still dramatically underplaying the level of sales declines that will be seen in the staffing and recruitment sectors.
It thinks that consensus 2010 estimated sales forecasts are perhaps 30 percent too high and it expects considerable downgrades to consensus.
It therefore thinks an underweight position remains the best approach.
For Randstad, it keeps a 14 euros price target, saying the main issue with the stock is not one of quality of company or management, but simply the idle time risk that it thinks has to be reflected in a lower multiple.
For Michael Page, the broker notes that the company is small enough to be a bid target for Adecco and Manpower, yet it thinks the scale and speed of the UK downturn will put off potential acquirers in the short term.
The broker keeps a 'hold' rating on Hays, saying upside risk could come from Hays being an acquisition target or that from better growth than we forecast.
Although there is already some value in the sector on a longer term basis, it thinks stocks could still fall another 30 percent with weaker revenue trends. hannah.benjamin@thomsonreuters.com hmb/slj
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