TD Cowen analyst Bryan Bergin maintained a Hold rating on Paychex today and set a price target of $114.00.
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Bryan Bergin’s rating is based on a combination of factors that suggest a neutral outlook for Paychex. The company’s recent underperformance, with shares declining significantly, reflects concerns about its fiscal year 2026 revenue guidance and a broader investor aversion to the Human Capital Management sector. Despite expectations for second-quarter results to align with consensus and fiscal year guidance to be reaffirmed, there is skepticism about potential upside catalysts.
Paychex’s performance is perceived as lacking the necessary momentum to change the current investment thesis. For a positive shift, the company would need to demonstrate significant growth in key areas, which seems uncertain at this time. While the company has shown solid execution on cost synergies and margin expansion, these factors have not been enough to drive investor sentiment positively. Therefore, the Hold rating reflects a balanced view of the risks and opportunities facing Paychex, with no immediate catalysts for a significant change in outlook.
Bergin covers the Technology sector, focusing on stocks such as Accenture, Block, and Genpact. According to TipRanks, Bergin has an average return of -1.8% and a 42.42% success rate on recommended stocks.
In another report released on November 21, UBS also maintained a Hold rating on the stock with a $120.00 price target.