In a report released today, Bryan Bergin from TD Cowen maintained a Hold rating on Automatic Data Processing, with a price target of $317.00.
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Bryan Bergin has given his Hold rating due to a combination of factors influencing Automatic Data Processing’s current and future performance. The company posted strong fourth-quarter results for FY25, with revenue and margin exceeding expectations. However, macroeconomic uncertainties have impacted client decision-making, particularly in more complex engagements, leading to a slight miss in new business bookings.
Despite these challenges, ADP has shown confidence in its ability to accelerate growth in FY26, supported by a rising pipeline, product maturity, and strategic investments. The company’s valuation is above its five-year average, and while execution has been solid, potential macroeconomic moderation may limit further valuation expansion. Thus, Bergin views a neutral stance as appropriate, adjusting the price target to reflect these considerations.
In another report released today, Jefferies also maintained a Hold rating on the stock with a $315.00 price target.
Based on the recent corporate insider activity of 121 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ADP in relation to earlier this year.