ADP price target lowered to $234 from $281 at BMO Capital

BMO Capital analyst Daniel Jester lowered the firm’s price target on ADP (ADP) to $234 from $281 and keeps a Market Perform rating on the shares as part of a broader research note previewing Q1 in Human Capital Management, or HCM . Shares have been soft into Q3 results due later this month, which reflects a combination of cyclical and structural growth worries that collectively imply ongoing risk to the trajectory of estimates, and based on the firm’s reading of intra-quarter data, read-throughs from Paychex, and the recent discussions with industry participants, BMO expects modest upside in ADP results in Q3 but not strong enough to alleviate its near-term caution, the analyst tells investors in a research note.