UPDATE: Goldman Sachs Raises PT to $53 on Automatic Data Processing

Goldman Sachs maintains its Neutral rating on Automatic Data Processing

as it still looks for a more opportune entry point, and raises its price target by $1 to $53 a share on strong metrics. Goldman Sachs says, "ADP reported F2Q revenue/EPS of $2.583 bn/$0.68 (ex-one time items), above our forecast of $2.519 bn/$0.66 and in line with the Street. The revenue upside was driven by strength in Employer Services, partially offset by lower gross margins of 50.5% (vs. GSe 53.4%) and a higher share count due to lower buybacks in the quarter. Management reaffirmed its FY12 revenue guidance of 7%-9%, but adjusted EPS guidance to 8%-9% from 8%-10%. Based on the F2Q beat, stronger new sales growth, lower buyback assumptions and revised FY12 guidance, we are revising our FY12-FY14 EPS modestly to $2.74/$2.99/$3.33." ADP closed at $56.92 a share on Wednesday.