Hold Rating on Paychex Amid Premium Valuation and Labor Market ConcernsWe are initiating coverage of Paychex (PAYX) with an EW rating and $135 price target. Our neutral view is based on: 1) the premium valuation in shares, 2) the sub-optimal state of labor markets, given deteriorating KPIs and downwardly revised projections, and 3) areas of variability in the revenue model, which limits the potential for upward estimate revisions. We are positive on the medium/long-term impact of Paycor and see the premium valuation as appropriate, given industry leading margin/FCF profile, but view the risk/reward as balanced.