Paychex price target lowered to $121 from $140 at BMO Capital

BMO Capital lowered the firm’s price target on Paychex (PAYX) to $121 from $140 and keeps a Market Perform rating on the shares ahead of its Q2 results. Against a backdrop of cooling small-business labor market trends, the company should report an “okay quarter” with good execution on cost efficiencies, even as shares have lagged against concerns that the second-half improvement embedded in guidance has become “more difficult to achieve”, the analyst tells investors in a research note. BMO adds it is sympathetic to these worries and not sure that progress toward resolution will emerge this quarter.