Bank Of America Reiterates On Paychex, Inc.

Analysts at Bank of America reiterated a Neutral rating on Paychex, Inc. PAYX and increased the price target by $1 to $45.

Paychex on Wednesday reported first quarter 2015 earnings, with an EPS of $0.47 beating Street estimates by $0.01 per share.

Analysts find the beat in earnings was a result of better-than-expected operating margin.

In addition, Paychex has increased its mobile solutions for Paychex accounting and announced its Skylight PayOptions Program. Analysts stated, "Management noted that it is seeing consistent demand for this product."

Lastly, analysts mention that Paychex currently has "an unusually high cash balance ($463mn versus $153mn at FY14-end). Management highlighted opportunistic share repurchases and potential M&A as the reason for the cash build."

Shares of Paychex recently traded at $43.55, down 0.73 percent.