Topeka Capital Starts Paychex (PAYX) at Sell

Topeka Capital initiated coverage on Paychex (NASDAQ: PAYX) with a Sell rating and a price target of $43.00.

Analyst John T. Williams said, "Despite an attractive dividend yield, improved macro backdrop, and relatively low expectations, we do not believe the company will generate enough near-term growth to justify its super-premium relative valuation (shares trade at 22x 2016 EPS) —particularly when other names in the sector trade at similar multiples but offer far higher revenue and EPS growth rates."

For an analyst ratings summary and ratings history on Paychex click here. For more ratings news on Paychex click here.

Shares of Paychex closed at $47.33 yesterday.

You May Also Be Interested In

• BofA Securities Starts GE Vernova (GEV) at Neutral, 'Multiyear turnaround amid positive demand backdrop'
• Boston Scientific (BSX) PT Raised to $83 at Stifel
• Prudential Financial (PRU) PT Raised to $116 at Evercore ISI