ADP initiated with a Buy at Guggenheim

Guggenheim initiated coverage of ADP (ADP) with a Buy rating and $270 price target ADP has underperformed the S&P 500 year-to-date, driven by the narrative that AI will replace workers and directly impact seat-based software vendors, but has been more resilient than peers, the analyst tells investors. While the firm acknowledges this threat, it believes “it is far too early to significantly discount terminal values, especially for a diversified company like ADP,” the analyst added.