RBC Capital on ADP (ADP): 'Focus on Bookings Growth and FY26 Guidance'

RBC Capital analyst Ashish Sabadra reiterated a Sector Perform rating and $315.00 price target on ADP (NASDAQ: ADP).

The analyst commented: "Focus on Bookings Growth and FY26 Guidance; Solid pipelines heading into the biggest bookings quarter are partially offset by softness in international bookings, with some elongation in the sales cycle. Accordingly, we expect 5-6% bookings growth at the midpoint of the 4-7% guidance range. Separately, we expect ADP to assume pays per control growth of ~1%, client retention to decline modestly by 30 to 10bps, and PEO WSE growth of 2-3%. However, higher for longer rates bode well for Client Funds Interest. This setup would support 5-6% revenue growth and 8-10% EPS growth in FY26E, which is modestly below mid-term guidance but aligns with consensus estimates."

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

Shares of ADP closed at $301.79 yesterday.

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