UPDATE: BMO Capital Markets Cuts PT to $65 on Automatic Data Processing Following FQ2 Earnings

BMO Capital Markets maintained Automatic Data Processing

with an Outperform rating and lowered the price target from $67.00 to $65.00. BMO Capital Markets noted, "Although there are many moving parts to the story, revenues were somewhat ahead of expectations, though increased costs and lower interest rates hurt margins. While management did not change its FY2013 revenue and EPS growth expectations, it did “increase” the adverse impact that lower interest rates would have on interest income in FY2013 (an $85-$90 million y/y decline; $5 million worse than prior guidance and the second straight quarter where guidance for this line item was reduced). This impact will likely continue into FY2014 although to a lesser extent." Automatic Data Processing closed at $60.44 on Tuesday.