UPDATE: Deutsche Bank Ups Target on to $31 on Paychex

Deutsche Bank raises its price target $3 to $31 on Hold-rated Paychex

as the company reports quarterly results show sales improvement. Deutsche Bank says, "PAYX reported service revenues of $559m (7% Y/Y, 5% organic) and EPS of $0.37, slightly lower than our est. of $562m (8.2% Y/Y) and EPS of $0.38. Sales growth improved to mid-single digits, but PAYX's client base was flattish Y/Y. We are lowering our FY12 EPS by $0.02 to $1.51 due to a slower revenue growth acceleration and maintaining our FY13 EPS. We are raising our TP, but maintaining our Hold rating as the outlook remains mixed." PAYX closed at $31.35 a share yesterday.