Paychex Faces Price Target Cuts By Analysts Following Q2 Results

Paychex Inc PAYX reported better-than-expected earnings results for its second quarter on Thursday.

Paychex reported second-quarter FY23 revenue growth of 7% year-on-year to $1.19 billion, in line with the consensus. Adjusted EPS of $0.99 beat the consensus of $0.95.

Paychex sees FY23 revenue of $4.981 billion (versus the prior $4.935 billion - $4.981 billion), above the consensus of $4.97 billion. The company sees adjusted EPS guidance to $4.22 - $4.30 (vs. prior $4.19 - $4.22) above the consensus of $4.18.

Paychex shares dropped 2.3% on Thursday, and gained 0.5% to trade at $112.64 on Friday.

These analysts made changes to their price targets on Paychex after the company released quarterly results.

• Jefferies cut the price target on Paychex from $130 to $120. Jefferies analyst Samad Samana maintained a Hold rating on the stock.
• Barclays slashed Paychex price target from $127 to $115. Barclays analyst Ramsey El-Assal maintained an Equal-Weight rating on the stock.
• Morgan Stanley cut the price target on the stock from $130 to $125. Morgan Stanley analyst James Faucette maintained the stock with an Equal-Weight.
• JP Morgan lowered Paychex price target from $121 to $119. JP Morgan analyst Tien-Tsin Huang maintained the stock with an Underweight.

Check This Out: Most Affordable Stocks In The Consumer Discretionary Sector: Tesla, Ford And More