Paychex (PAYX) slightly exceeded fiscal Q2 revenue expectations on the back of higher interest income on client funds despite challenges from Employee Retention Tax Credit impacts, RBC Capital Markets said in a note emailed Friday.
Despite the headwinds, Paychex effectively managed costs and improved operating margins through expense control and strategic investments in global operations, the investment firm said.
Demand, customer retention and mid-market Human Capital Management sales are expected to drive accelerating Management Solutions growth as ERTC-related issues subside, RBC analysts noted.
Improved optimism among small businesses, as shown by the rise in the Small Business Optimism Index, points to a supportive environment for Paychex's services, RBC said.
RBC has a sector perform rating for Paychex with a $148 price target.
Price: 139.18, Change: +1.37, Percent Change: +0.99
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。