UPDATE: Morgan Stanley Initiates Coverage on Automatic Data Processing as Preference at Current Valuation

In a report published Thursday, Morgan Stanley analyst Smittipon Srethapramote initiated coverage on Automatic Data Processing ADP with an Equal-Weight rating. In the report, Morgan Stanley noted, “The payroll processors' business models are highly stable with an opportunity to grow off trends in HR outsourcing. However, dividend and buyback yields are at multi-year lows, and PAYX is at risk of being unable to grow as quickly as it did before. We prefer ADP (EW) over PAYX (UW).” Automatic Data Processing closed on Wednesday at $79.33.