UPDATE: Deutsche Bank Raises PT on Paychex to $28

Deutsche Bank is out with its report today on Paychex PAYX, raising its PT from $27 to $28. In a note to clients, Deutsche Bank writes, "Our $28 PT is aligned w/ mid-point of our normalized earnings analysis, based on forecast thru FY14E, assuming +8% revs CAGR and EBIT margin of 39.8%. We solve for price, based on EBIT margin assumptions around our forecast and exit multiples b/w 15-20x EPS, in-line w/ ADP's range. We don't assign PAYX a premium multiple given prospects for lagged recovery of biz amidst unique severity of jobs cycle for small biz." Deutsche Bank maintains Hold on PAYX. Shares of PAYX closed Wednesday at $29.71, down 0.87% from Tuesday's close.