UPDATE: BMO Capital Markets Reiterates on Automatic Data Processing on Expected New Bookings Growth

In a report published Thursday, BMO Capital Markets analyst Jeffrey M. Silber reiterated an Outperform rating on

, and raised the price target from $78.00 to $84.00. In the report, BMO Capital Markets noted, “We believe the 1% new bookings growth was below Street expectations, leading to some selling pressure on the stock today. However, management still expects new bookings to come in at 8%-10% growth for the year – and this company typically delivers on its forecasts. In addition, we believe the solid bookings growth in the back half of FY2013 should compensate for some weaker-than-expected results in the first half of FY2014. We believe ADP continues to make steady progress transitioning clients onto new platforms – crucial to maintaining share as competition for HCM services intensifies. Management believes the declines in client interest should get ‘less worse' from here on out, weakening a multi-year headwind to EPS growth.” Automatic Data Processing closed on Wednesday at $74.29.