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![ADP office in Mississauga, Ontario, Canada](https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1313856289/image_1313856289.jpg?io=getty-c-w750)
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BofA Securities on Wednesday upgraded its automatic data processing (Nasdaq:ADP) Upgraded the company's more balanced risk/reward rating from „underperform“ to „neutral“ and raised its price target to $243 from $217. This is about 3% higher than the stock's trading price.
Analysts at BofA Securities have reported that automated data processing (ADP) Stocks have lagged the S&P 500 by about 2,400 basis points as expected tailwinds from employment and interest rates have weakened.
„Strength in F1Q ES bookings and retention and gradual improvement in macros could drive a modest increase in F24 guidance,“ F2Q EPS forecast set at $2.11, in line with consensus. ing.
Additionally, it notes that the worst is likely over for the small professional employer organization segment, with F2Q likely to be the trough for growth and profits. ADP will report F2Q on January 31st.
BofA Securities continues to favor Visa with a buy rating (New York Stock Exchange:V) and MasterCard (New York Stock Exchange:Ma) automatic data processing (ADP), Paychex is also rated as „underperform“ (PAYX). Visa says (V) and Mastercard have a stronger competitive moat, longer secular tailwinds, and higher P&L growth, all at a modest valuation premium relative to ADP or PAYX. I would prefer his ADP over PAYX given the concentration of small and medium-sized companies.
ADP shares increase +0.28% Up to $235.95 Pre-market.