UPDATE: Deutsche Bank Reiterates Hold Rating, Raises PT on Automatic Data Processing Following Dealer Spin-Off

In a report published Friday, Deutsche Bank analyst Greg Poole reiterated a Hold rating on

, and raised the price target from $71.00 to $80.00. In the report, Deutsche Bank noted, “Dealer spin-off to provide EPS accretion. ADP reported revenues of $3.07bn (10% Y/Y) and EPS of $0.63 compared to our est. of $3.03bn (8% Y/Y) and $0.63. Solid momentum in Employer Services (ES) and PEO partially offset by weaker than expected Dealer services. Positively, interest on funds held for clients is expected to turnaround in FY15 ($5-$15m Y/Y growth vs. $48m Y/Y decline in FY14) which will drive margin expansion and ADP has guided to 75-100bps of margin expansion in FY15 (compared to flat in FY14). The company expects 11 – 13% EPS growth in FY15 with further upside from the divestiture of dealer services. Accordingly, we are raising our FY15 EPS by $0.06 to $3.52 and introducing our FY16 EPS of $3.88. Maintain Hold.” Automatic Data Processing closed on Thursday at $81.31.