UPDATE: Deutsche Bank Color On ADP

Deutsche Bank, which raised its PT on shares of Automatic Data Processing, Inc. ADP, is providing some color on the stock. “Organic revs/EPS outlook is higher 3rd time this yr, underscoring strong rebound in key top-line metrics, but op. margins are lagging due to heavy inv't in sales/systems,” Deutsche Bank writes. “W/ ADP trading above 5yr fwd P/E avg, mkt may need to see meaningful near-term margin expansion w/ revs growth for multiple expansion. W/ risk hiring cycles may be shortening & environment for which ADP is investing may not materialize, interplay b/w revs/margin growth may no longer be as before.” Automatic Data Processing closed Monday at $54.70.