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Paychex (PAYX) PT Lowered to $115 at Stifel

June 29, 2022 1:51 PM EDT
Get Alerts PAYX Hot Sheet
Price: $129.55 +0.76%

Rating Summary:
    4 Buy, 14 Hold, 5 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 53 | New: 12
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Stifel analyst David Grossman lowered the price target on Paychex (NASDAQ: PAYX) to $115.00 (from $140.00) while maintaining a Hold rating following earnings.

The analyst commented, "F4Q results were modestly above consensus and FY23 guidance largely in-line. Prior period trends continued with strong sales activity, employment trend and client retention, and management indicated it is not seeing any signs of an economic slowdown or impact from rising rates on its business. Consistent with this narrative, FY23 revenue growth guidance (7-8%) looks very similar to the FY21/FY22 results normalized for the compare, which may reflect some conservatism. FY23 margin guidance (flat to +100bp y/y) reflects many factors but appears aligned with historical performance. PAYX has been a relative outperformer (v. S&P500) since late March, most likely reflecting its defensive characteristics. While the stock has been a relative underperformer today versus the S&P500 (~450bp), we do not see anything in today's report that changes our fundamental view of the stock. PAYX's EPS premium to the S&P is 65%, above the higher-end of its historical range (45-55%)."



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