Paychex (PAYX) remains steady in a slightly lower-rate environment with stable conditions for small and medium-sized businesses, Morgan Stanley said Thursday in a note.
Company management indicated checks per client stayed flat, signaling a steady labor market, though employment levels softened briefly due to weather challenges and California wildfires, Morgan Stanley said.
Paychex on Wednesday reported higher-than-expected fiscal Q3 earnings, bolstered by revenue growth across its two main segments.
Business closures improved by double-digit percentages from a year earlier, Morgan Stanley said.
Growth was boosted by one-time factors in Q3, including tightened billings that improved pricing and slightly better year-end discounting compared with the prior fiscal year, Morgan Stanley said.
Morgan Stanley boosted its price target on Paychex stock to $142 from $137 and kept its equalweight rating.
Price: 150.43, Change: +0.24, Percent Change: +0.16
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。