Citigroup lowers its rating on Automatic Data Processing ADP to Neutral from Buy with a primarily valuation-related rationale. As such, it bumps its price target up $2 to $60 a share.
Citigroup says, "Valuation is a key part of our downgrade rationale but not the only reason. ADP's operating metrics have improved steadily and, in our view, the rate of improvement in factors like pays/control and client retention may have peaked. One of the two areas that have not improved yet is large business sales growth (particularly non-US) and that is typically accompanied with margin pressure – the other area is interest rates and that environment is unlikely to improve until 2014. In other words, prospects for a continued upside to expectations seem rather limited."
ADP closed at $56.92 a share on Wednesday.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in