Paychex price target lowered to $140 from $143 at BMO Capital

BMO Capital lowered the firm’s price target on Paychex (PAYX) to $140 from $143 and keeps a Market Perform rating on the shares. The company’s Q1 results were “okay”, but there remain three areas of uncertainty in the business where guidance assumes improvement in the second half of FY26, the analyst tells investors in a research note. BMO adds that in Management Solutions, Q1 showed some residual frictions within Paycor which guidance assumes will fade, even though the firm sees risk around the drivers of improvement in the organic business against tougher comps, and for Professional Employer Organization segment, improvement in the business requires execution.