Barclays Maintains an 'Equalweight' on Paychex (PAYX); Investments & Lumpiness Drive 2Q Miss
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Price: $124.48 +1.28%
Rating Summary:
3 Buy, 14 Hold, 8 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
Rating Summary:
3 Buy, 14 Hold, 8 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
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Barclays maintains an 'Equalweight' on Paychex (NASDAQ: PAYX), PT $32.
Barclays analyst says, "Last night, Paychex reported generally in-line F4Q'11 results with revenue a bit above estimates (due to acquisitions) and EPS in line with our/consensus estimates. PAYX also provided FY'12 guidance that met expectations. While fundamentals continue to slowly improve, we see no near-term catalysts and find the stock fairly valued."
"We are raising our FY'12 revenue estimate by ~1.5%, but trimming FY'12 EPS by $0.02 to $1.50 and initiating a FY'13 EPS estimate of $1.68 (+6%/+11% y/y, respectively). While results continue to modestly improve, low interest rates and a sluggish employment recovery are likely to constrain near-term growth prospects. As a result, we find PAYX fairly valued at 20.4x/18.8x our CY'11-'12 EPS estimates."
For more ratings news on Paychex click here and for the rating history of Paychex click here.
Shares of Paychex closed at $29.71 yesterday.
Barclays analyst says, "Last night, Paychex reported generally in-line F4Q'11 results with revenue a bit above estimates (due to acquisitions) and EPS in line with our/consensus estimates. PAYX also provided FY'12 guidance that met expectations. While fundamentals continue to slowly improve, we see no near-term catalysts and find the stock fairly valued."
"We are raising our FY'12 revenue estimate by ~1.5%, but trimming FY'12 EPS by $0.02 to $1.50 and initiating a FY'13 EPS estimate of $1.68 (+6%/+11% y/y, respectively). While results continue to modestly improve, low interest rates and a sluggish employment recovery are likely to constrain near-term growth prospects. As a result, we find PAYX fairly valued at 20.4x/18.8x our CY'11-'12 EPS estimates."
For more ratings news on Paychex click here and for the rating history of Paychex click here.
Shares of Paychex closed at $29.71 yesterday.
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