RESEARCH ALERT-Lehman cuts Manpower, Robert Half

Recasts, adds details)

Aug 18 (Reuters) - Staffing companies Manpower Inc and Robert Half International Inc were downgraded by Lehman Brothers, with the brokerage saying the sharp economic decline in Europe and stronger U.S. dollar are likely to hurt their results.

Lehman downgraded Manpower to "equal weight" from "overweight", and cut its price target on the stock to $56 from $60. Shares of the employment services company closed at $51.90 Friday on the New York Stock Exchange.

While Manpower's strong geographic diversification and limited U.S. exposure have been positive over last year as the U.S. weakened, the recent Eurozone economic deterioration is likely to hurt Manpower's 70 percent exposure to Europe, the brokerage said.

"In addition, recent strengthening of the U.S. dollar versus the Euro and other currencies is likely to turn forex from big tailwind into a headwind for Manpower by the fourth quarter of 2008 and first quarter of 2009," the brokerage added.

Lehman downgraded Robert Half International to "under weight" from "equal weight", and said shares of the specialty staffing company have little near-term upside potential due to a deteriorating economic environment.

The brokerage, which has a $23 price target on the stock, estimates Robert Half's 2009 earnings per share will fall 34 percent year-over-year.

Shares of Robert Half closed at $28.31 Friday on the New York Stock Exchange. (Reporting by Eric Yep in Bangalore; Editing by Bernard Orr)