Paychex initiated with a Neutral at Guggenheim

Guggenheim analyst Jacob Smith initiated coverage of Paychex (PAYX) with a Neutral rating and no price target Paychex has underperformed the S&P 500 by 16% year-to-date, driven by the narrative that AI will replace workers and directly impact seat-based software vendors, the analyst noted. While the firm acknowledges this threat, it views Paychex as “better positioned than most” human capital management peers, citing structural dynamics that create “natural barriers to disruption,” the analyst added.