William Blair analyst Andrew Nicholas has maintained their neutral stance on PAYX stock, giving a Hold rating today.
Andrew Nicholas has given his Hold rating due to a combination of factors that reflect both positive and cautious elements in Paychex’s recent performance and outlook. The company’s fiscal third-quarter results were slightly above expectations, with revenue and adjusted EPS marginally surpassing estimates. This positive outcome was partly driven by favorable commentary on the Paycor acquisition and steady HR outsourcing growth.
Despite these strengths, there are areas of concern that temper a more bullish outlook. The macroeconomic environment is described as stable, yet customer hiring did not meet expectations, and there are challenges in the PEO segment, particularly with the at-risk Florida book of business. These mixed signals suggest a balanced view, justifying the Hold rating as the company navigates both opportunities and risks in its current market position.
In another report released today, Barclays also maintained a Hold rating on the stock with a $140.00 price target.