UPDATE: Citigroup Reduces PT to $30.50 on Paychex on FQ4 Revenue Miss

Citigroup reiterates its Neutral rating on Paychex PAYX and reduces its price target from $31 to $30.50. Citigroup says, "PAYX posted 4Q12 results with revenues missing consensus by ~1% and better margins being partly offset by a higher tax rate for in-line EPS of $0.34. The company issued uninspiring FY13 guidance with revenue growth deceleration likely and no anticipated margin expansion, i.e., another year of midsingle digit EPS growth. We are lowering our forward estimates and our PT is modestly lower even as we roll forward our P/E target. Given the stock's premium multiple (19x CY13 P/E) and middling growth rate, we continue to believe that nearterm upside in the stock is limited and we maintain our Neutral rating." PAYX closed at $31.76 on Wednesday.