Analyst Bryan Bergin of TD Cowen maintained a Hold rating on Paychex (PAYX – Research Report), retaining the price target of $147.00.
Bryan Bergin has given his Hold rating due to a combination of factors influencing Paychex’s current and future performance. Despite the challenges presented by a downward revision in PEO&I growth and macroeconomic uncertainties, Paychex has shown resilience through effective management of controllable factors. The company’s initial comfort with FY26 consensus expectations, which include modest growth and margin expansion, contributes to a cautiously optimistic outlook.
However, the murky economic backdrop and a premium valuation make the growth outlook for FY26 appear more challenging. While there is optimism surrounding the PYCR deal and its potential for cost and revenue synergies, the overall picture remains mixed. The crowded short positioning and the company’s steady performance provide some support, but the uncertainties and revised guidance suggest a balanced approach, justifying the Hold rating.
Bergin covers the Technology sector, focusing on stocks such as Cognizant, Block, and Adyen. According to TipRanks, Bergin has an average return of 4.8% and a 51.56% success rate on recommended stocks.
In another report released on March 11, RBC Capital also reiterated a Hold rating on the stock with a $148.00 price target.