Barclays Reiterates an 'Overweight' on ADP (ADP); High Quality Franchise that Offers Investors Good Defensiveness

Barclays reiterates an 'Overweight' on ADP (NASDAQ: ADP) price target of $58.00.

Barclays analyst says, "We believe ADP is a high quality franchise that offers investors good defensiveness with strong growth potential, and is thus a good idea in the current challenging market and economy. ADP has outperformed the market y-t-d and in the recent market swoon, and we believe its defensive characteristics (recurring revenue, strong cash flow/balance sheet, 3% dividend yield, etc.) warrant continued outperformance."

"We also believe ADP is well positioned for growth over the next few years. The company invested aggressively throughout the downturn, which is driving share gains and growth acceleration in FY'12. ADP also continues to reinvest its strong cash flows into tuck-in acquisitions, growing dividends, and share repurchases."

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

Shares of ADP closed at $48.79 yesterday.

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