UPDATE: Credit Suisse Reiterates Outperform Rating, Lowers PT on Automatic Data Processing on Model Update

In a report published Wednesday, Credit Suisse analyst Georgios Mihalos reiterated an Outperform rating on

, but lowered the price target from $91.00 to $80.00. In the report, Credit Suisse noted, “Given the loss of its AAA credit-rating (which was predicated on its Dealer business), lower cost structure and cash-generative prowess—we believe ADP could accelerate shareholder returns over the coming years in the form of share repurchases, potentially aided by leverage. While we are not modeling any share repurchases beyond the $825M guided, we note that a 1x leverage ratio would represent ~$2.3B that could be used in the form of share repurchases which could materially accelerate EPS growth by ~5 pts. from FY15 – FY16.” Automatic Data Processing closed on Tuesday at $82.87.