ADP's Upbeat Q1 Results Earn Price Target Boost; Analyst Trims FIS Price Target On Dismal Q3

Mizuho analyst Dan Dolev maintained Automatic Data Processing Inc ADP with a Buy and raised the price target from $257 to $276.
The company's Q1 results were strong.
The company slightly raised guidance as higher client fund interest drove the overall increase in the outlook, likely offset by higher FX headwinds.
From a macro perspective, management sounded constructive.
However, it highlighted some caution, like softer bookings growth in international business, and continued to watch the demand environment in global markets.
His revenue estimates increased slightly, but the rounded FY growth rate remains the same.
Dolev maintained Fidelity National Information Services, Inc. FIS with a Buy and lowered the price target from $105 to $90.
FIS issued disappointing Q3 results and a subsequent profit warning.
He remained constructive. Management flagged several issues as culprits for lowering its guide. The culprits included a slowing level of bank consolidation due to deteriorating credit markets, inflation, cost pressures impacting the expense base, and sales timing and execution due to continued elongation in more significant transactions.
He noted FIS's recent significant cost reductions within its labor force as a first step in the turnaround.
He lowered his 2023 expectations and price target.
Price Action: ADP shares traded higher by 0.72% at $264.48 on the last check Friday.

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