Loading...
Loading...
Citigroup reduced its rating on Paychex
PAYX from Neutral to Sell with a reiterated $30.50 price target.
Citigroup commented, "Following PAYX' mixed 1Q13 results (lower revs, better margins) and the recent rally in the stock (+17% since early June), we are downgrading the stock to Sell from Neutral. PAYX appears on track to report another year of mid-single digits revenue and EPS growth, yet the stock has re- attained its premium valuation of ~21.5x FY13E P/E. While we appreciate PAYX' high quality business model and attractive dividend, the company has had difficulty attracting new clients (the main driver of long-term growth) and the outlook for the two key external contributors (US employment, interest rates) remains poor."
Paychex closed at $34.38 on Monday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in