Jefferies raises ADP stock price target to $305, maintains Hold

Published 29/01/2025, 23:18
Jefferies raises ADP stock price target to $305, maintains Hold

The company’s management team reaffirmed their guidance for both growth and margins at the consolidated and segment levels. Notably, management’s discussion on ADP’s business pipeline, the strategic partnership with Fiserv (NYSE:FI), and the company’s traction within the enterprise market were highlighted as key points of interest.According to Jefferies, the financial results presented by ADP demonstrate a strong operational performance that is expected to support the company’s stock price. The firm’s analysts have emphasized the solid outcomes of the reported quarter, indicating that these should provide a positive influence on the stock’s valuation. With a P/E ratio of 32.24 and a 26-year track record of consecutive dividend increases, ADP continues to demonstrate strong fundamentals. For deeper insights into ADP’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports. With a P/E ratio of 32.24 and a 26-year track record of consecutive dividend increases, ADP continues to demonstrate strong fundamentals. For deeper insights into ADP’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports.

The company’s management team reaffirmed their guidance for both growth and margins at the consolidated and segment levels. Notably, management’s discussion on ADP’s business pipeline, the strategic partnership with Fiserv, and the company’s traction within the enterprise market were highlighted as key points of interest.According to Jefferies, the financial results presented by ADP demonstrate a strong operational performance that is expected to support the company’s stock price. The firm’s analysts have emphasized the solid outcomes of the reported quarter, indicating that these should provide a positive influence on the stock’s valuation. With a P/E ratio of 32.24 and a 26-year track record of consecutive dividend increases, ADP continues to demonstrate strong fundamentals. For deeper insights into ADP’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports.

The company’s management team reaffirmed their guidance for both growth and margins at the consolidated and segment levels. Notably, management’s discussion on ADP’s business pipeline, the strategic partnership with Fiserv, and the company’s traction within the enterprise market were highlighted as key points of interest.

According to Jefferies, the financial results presented by ADP demonstrate a strong operational performance that is expected to support the company’s stock price. The firm’s analysts have emphasized the solid outcomes of the reported quarter, indicating that these should provide a positive influence on the stock’s valuation.

In other recent news, Automatic Data Processing (NASDAQ:ADP) reported a robust first quarter performance, showcasing a 7% increase in revenue and a 12% rise in earnings per share (EPS), surpassing market expectations. This performance was attributed to the successful acquisition of WorkForce Software (ETR:SOWGn) and strong results in the Employer Services and Professional Employer Organization segments. BofA Securities analyst Jason Kupferberg updated the firm’s outlook on ADP, increasing the price target from $306.00 to $315.00 while maintaining a Neutral rating. Analysts from TD Cowen, led by Jared Levine, also increased their price target on ADP shares while keeping a Hold rating.

In terms of workforce, the U.S. private sector saw an increase of 122,000 jobs in December, as reported by the ADP® National Employment Report™. This independent assessment of the labor market is a collaborative effort between ADP Research and the Stanford Digital Economy Lab. Finally, there have been changes in ADP’s executive team with Joseph DeSilva, currently President of Global Sales at ADP, stepping into the role of Executive Vice President, North America and Chief of Operations, replacing John C. Ayala. These are the recent developments shaping ADP’s business operations and future trajectory.

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