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J.P. Morgan Reiterates Underweight Rating, $34 PT on Paychex

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In a report published Wednesday, J.P. Morgan & Co. reiterated its Underweight rating and $34.00 price target on Paychex (NASDAQ: PAYX).

J.P. Morgan noted, “We are tweaking our PAYX estimates following a mixed F1Q with light revenues but few surprises. EPS of $0.42 compared to JPMe of $0.40 and Street of $0.41, with upside coming from cost efficiencies. Relevant payroll metrics were steady, with growth in checks per client continuing for the tenth consecutive quarter, retention near historic levels and modest increases in revenue per check. Management reiterated guidance, implying a pick up in revenue growth and a moderation in margins for the rest of the year. We reiterate our $34 price target and remain UW shares as we see limited EPS and multiple expansion near term.”

Paychex closed on Tuesday at $33.41.

Latest Ratings for PAYX

DateFirmActionFromTo
Sep 2014BernsteinInitiates Coverage onUnderperform
Aug 2014JP MorganMaintainsUnderweight
Jul 2014JP MorganMaintainsUnderweight

View More Analyst Ratings for PAYX
View the Latest Analyst Ratings

Posted-In: J.P. Morgan & Co.Analyst Color Reiteration Analyst Ratings

 

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