Skip to main content

Market Overview

What The Sell-Side Thought Of Bill Ackman's ADP Thesis Presentation

What The Sell-Side Thought Of Bill Ackman's ADP Thesis Presentation

Billionaire activist investor Bill Ackman made his activist case against Automatic Data Processing (NASDAQ: ADP) public last week, which was well researched and "reflected significant efforts at due diligence," analysts at Baird Equity Research commented in a research report.

Ackman and his team did present a series of opportunities for ADP in which the company can boost revenue and gain market share while simultaneously improving its profitability, Baird's Mark Marcon commented in a research report. The presentation also factually pointed out that in its current form ADP is indeed losing market share and needs to improve its competitiveness within the Enterprise space.

In fact, many of the points made during the presentation are ones which ADP's management are "well aware of" and have been addressing areas of weakness over the past six years, Marcon continued. However, many of Ackman's ideas for change aren't necessarily feasible in the timeline suggested.


Ackman's presentation may have also suggested that ADP would be in a better position under a different management team, the analyst added. As such, a vote for Ackman's slate of directors to the company's board would be seen as a vote against the current management. As such, many long-term shareholders may feel "anxious" to vote against the current management team after six years of outperformance.

"In our opinion, making transformational changes when paying one out of every six private sector employees is challenging ... particularly when trying to maintain client retention and employee engagement," Marcon wrote.

Related Links:

BMO 'Learned Some New Things' From Pershing Deep Dive Into ADP

How The ADP Report Differs From The NFP report

Latest Ratings for ADP

May 2021CitigroupMaintainsBuy
Apr 2021Morgan StanleyMaintainsEqual-Weight
Feb 2021MizuhoInitiates Coverage OnBuy

View More Analyst Ratings for ADP
View the Latest Analyst Ratings


Related Articles (ADP)

View Comments and Join the Discussion!

Posted-In: activist investor Baird Bill Ackman Mark Marcon Pershing Square Capital ManagementAnalyst Color Analyst Ratings Best of Benzinga

Latest Ratings

FOEGabelli & Co.Downgrades
ACMCredit SuisseMaintains67.0
PRUCredit SuisseMaintains125.0
TDGCredit SuisseMaintains660.0
IIIBarrington ResearchUpgrades7.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at