UPDATE: Bank Of America Reiterates On Paychex On Mixed Factors

In a report published Thursday, Bank of America analyst Sara Gubins reiterated a Neutral rating on

, but lowered the price target from $47.00 to $44.00. In the report, Bank of America noted, “Management's upbeat tone contrasted to PAYX shares' -2% reaction to 4Q earnings and FY15 guidance. A number of trends are encouraging: net sales growth accelerated, payroll clients grew 2% (up from 0.5% in FY13 and FY12), and HR Services revenue grew 10% on a comparable basis in FY14. However, checks per payroll only grew 1.1% in 4Q and could slow next year, in part driven by mix. Paychex's FY15 guidance for 6-8% net income growth suggests minimal acceleration from 7% on an adjusted basis in FY14, though it could prove conservative.” Paychex closed on Wednesday at $41.15.