Goldman Sachs Upgrades ADP (ADP) to Buy, Stong Earnings Power

Goldman Sachs upgraded ADP (NASDAQ: ADP) from Neutral to Buy with a price target of $68.00 (from $53.00).

The firm cited stronger cycle-to-cycle earnings power, superior capital allocation and defensive characteristics. The firm sees ADP improving earnings power 50% in the current employment cycle. On capital allocation, the company has used more than 90% of its free cash flow on share repurchases and dividends. In additon, 90% revenue retention which keeps revenue stable during downturns.

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 $58.90 yesterday.

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