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UPDATE: Deutsche Bank Raises PT on Paychex on In-Line Quarter, Potential Upside

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Deutsche Bank Raises Paychex Price Target
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In a report published Wednesday, Deutsche Bank analyst Greg Poole reiterated a Hold rating on Paychex (NASDAQ: PAYX), and raised the price target from $35.00 to $39.00.

In the report, Deutsche Bank noted, “Inline quarter; reiterates guidance. PAYX posted revs of $608m (5.1% Y/Y) and EPS of $0.44, inline with our est. of $606m (4.8% Y/Y) and $0.42 (st. at $0.43) respectively. PAYX blamed weak payroll revenues to one less processing day and remains optimistic about ramp-up in 2H14 given positive sales momentum manifested in increased presentations. The traditionally high dividend yield is down to 3.5% and with a high payout ratio, we believe there is limited room for a dividend increase. However, potential upside from an improving interest rate env., small business formation, and healthcare reform, provides support (although will take time to show in the model). Maintain Hold.”

Paychex closed on Tuesday at $39.99.

Latest Ratings for PAYX

DateFirmActionFromTo
Dec 2014Deutsche BankMaintainsHold
Oct 2014Argus ResearchUpgradesHoldBuy
Sep 2014CitigroupMaintainsSell

View More Analyst Ratings for PAYX
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Posted-In: Deutsche Bank Greg PooleAnalyst Color Price Target Analyst Ratings

 

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