ADP price target lowered to $190 from $230 at Jefferies

Jefferies lowered the firm’s price target on ADP (ADP) to $190 from $230 and keeps an Underperform rating on the shares. The firm notes ADP delivered a strong Q3 as revenue and EPS growth beat consensus. Citing solid pipelines, ADP raised FY26 revenue above the beat and flowed through EPS upside. Jefferies sees the strong growth, especially in Professional Employer Organization, as encouraging, but thinks investors want an acceleration in foreign-exchange neutral Employer Services growth before underwriting multiple stabilization.