Citi Maintain Forecasts On Paychex

According to Citi, Paychex PAYX delivered an in-line 4Q11 performance and issued in-line initial guidance for FY12. Citi said that, though the quarter broke a string of six consecutive EPS beats, trends continued to improve modestly and guidance implies a continuation of those trends over the coming 12 months. “We maintain our FY12/FY13 EPS forecasts and our $32 PT. We believe risk/reward is balanced for PAYX. We continue to prefer ADP over PAYX in the payroll space given its more favorable valuation and better execution to date in this recovery.” Paychex closed yesterday at $29.71.