Cantor starts Paychex at Underweight, says Paycor move largely defensive

Cantor Fitzgerald initiated coverage of Paychex (PAYX) with an Underweight rating and $98 price target An intense small-to-medium business competitive landscape and macro-related pressures have inhibited Paychex’s ability to re-accelerate organic top-line growth, the analyst tells investors in a research note. While the acquisition of Paycor bolsters Paychex’s up-market capabilities, the firm believes the move was largely defensive and remains uncertain of the longer-term organic growth profile of the business.