TD Cowen analyst Bryan Bergin has maintained their neutral stance on PAYX stock, giving a Hold rating on August 21.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Bryan Bergin has given his Hold rating due to a combination of factors impacting Paychex’s outlook. He anticipates that the company’s first-quarter results will slightly surpass market expectations, but he remains cautious about the lack of clear catalysts for significant growth early in the fiscal year 2026. The recent underperformance of Paychex shares, driven by concerns about the labor market and skepticism regarding the company’s organic growth guidance, suggests that these issues may persist in the near term.
Bergin’s neutral stance is further influenced by the negative sentiment surrounding Paychex’s fiscal year 2026 guidance, particularly the organic growth target of approximately 5%, which some investors find challenging given the previous year’s exit rate. Despite Paychex’s efforts to address pricing headwinds, the analyst believes that any potential upside in the stock would require the company to demonstrate stronger-than-expected organic growth in the first quarter. Additionally, while Paychex’s operational efficiency is acknowledged, Bergin notes that some of the anticipated benefits may already be factored into investor expectations for fiscal year 2026.
In another report released on August 21, Citi also maintained a Hold rating on the stock with a $148.00 price target.
Based on the recent corporate insider activity of 70 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PAYX in relation to earlier this year.