Analyst Expectations For Automatic Data Processing's Future

7 analysts have shared their evaluations of Automatic Data Processing ADP during the recent three months, expressing a mix of bullish and bearish perspectives.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $298.57, a high estimate of $325.00, and a low estimate of $285.00. Marking an increase of 10.41%, the current average surpasses the previous average price target of $270.43.

Breaking Down Analyst Ratings: A Detailed Examination

An in-depth analysis of recent analyst actions unveils how financial experts perceive Automatic Data Processing. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Automatic Data Processing. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Automatic Data Processing compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Automatic Data Processing's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

For valuable insights into Automatic Data Processing's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Automatic Data Processing analyst ratings.

All You Need to Know About Automatic Data Processing

ADP is a provider of payroll and human capital management solutions servicing the full scope of businesses from micro to global enterprises. ADP was established in 1949 and serves over 1 million clients primarily in the United States. ADP's employer services segment offers payroll, human capital management solutions, human resources outsourcing, insurance and retirement services. The smaller but faster-growing professional employer organization segment provides HR outsourcing solutions to small and midsize businesses through a co-employment model.

Automatic Data Processing: Delving into Financials

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Revenue Growth: Over the 3 months period, Automatic Data Processing showcased positive performance, achieving a revenue growth rate of 1.95% as of 30 September, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.

Net Margin: Automatic Data Processing's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 20.88%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Automatic Data Processing's ROE excels beyond industry benchmarks, reaching 19.33%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Automatic Data Processing's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.84%, the company showcases efficient use of assets and strong financial health.

Debt Management: Automatic Data Processing's debt-to-equity ratio stands notably higher than the industry average, reaching 1.75. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

What Are Analyst Ratings?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.