UBS analyst Kevin Mcveigh maintains $Paychex (PAYX.US)$ with a hold rating, and adjusts the target price from $125 to $142.
According to TipRanks data, the analyst has a success rate of 58.5% and a total average return of 6.2% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Paychex (PAYX.US)$'s main analysts recently are as follows:
The expectation is for a 'pause' in the performance of Paychex shares, considering the company's outlook for 2025 and the absence of catalysts following the fiscal Q1 report.
Investors may have anticipated a modest outperformance for Paychex's fiscal Q1, but the recent approximate 5% increase in share price suggests that there were concerns about potential worsening discounting or bankruptcies, which seem unfounded at present. Improved confidence in the company's execution by FY25 underpins a more positive outlook on the shares.
Paychex reported a Q1 revenue beat against a conservative guide and revised its Interest on Funds Held for Clients revenue outlook in light of falling interest rates. Growth is anticipated to enhance in the latter half of FY25 with the reduction of ERTC - Employee Retention Tax Credit - headwinds, which are expected to diminish by Q4, and as comparisons become more favorable.
Note:
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Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
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