Automatic Data Processing, Inc. (NASDAQ:ADP) is included among the 15 Best Cheap Dividend Stocks to Buy.
On April 7, BMO Capital analyst Daniel Jester lowered the firm’s price recommendation on Automatic Data Processing, Inc. (NASDAQ:ADP) to $234 from $281. It reiterated a Market Perform rating on the shares. The update came as part of a broader research note previewing Q1 in Human Capital Management. Shares have been soft heading into Q3 results expected later this month. The analyst pointed to a mix of cyclical and structural growth concerns. Together, these suggest ongoing pressure on estimates. Based on intra-quarter data, read-throughs from Paychex, and recent discussions with industry participants, BMO expects modest upside in ADP’s Q3 results. Still, the firm does not see it as strong enough to ease its near-term caution, the analyst tells investors in a research note.
On March 31, TD Cowen also lowered its price target on ADP to $208 from $255 and kept a Hold rating. The firm updated its model to reflect the latest expectations for the Fed Funds rate, foreign exchange, and its outlook ahead of Q3 results.
Automatic Data Processing, Inc. (NASDAQ:ADP) provides cloud-based human capital management solutions. Its business operates through Employer Services and Professional Employer Organization segments.
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