Barclays Reiterates an 'Equalweight' on Paychex (PAYX); Expect Inline F4Q'11; Fairly Valued

Barclays reiterates an 'Equalweight' on Paychex (NASDAQ: PAYX), PT $32.

Barclays analyst says, "We expect PAYX to report inline to possibly slightly better-than-expected F4Q'11 results when the company reports tomorrow night post close (Wednesday, June 22nd). However, given low interest rates and only gradual employment recovery to-date, we expect modest near-term profit growth, and view PAYX as fairly valued."

"Despite progress, we expect depressed interest rates and a gradual employment rebound to remain in F'12. As a result, we expect only modest y/y earnings growth, and find PAYX shares fairly valued at 20.2x/18.6x our CY'11-'12 EPS estimates...Despite this view, PAYX's 4.2% dividend yield is attractive, especially for investors willing to wait for a stronger macro environment."

For more ratings news on Paychex click here and for the rating history of Paychex click here.

Shares of Paychex closed at $29.67 yesterday.

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