Automatic Data Processing Rating Reiterated by Deutsche Bank (ADP)
Automatic Data Processing (NASDAQ:ADP)‘s stock had its “hold” rating restated by research analysts at Deutsche Bank in a report released on Friday. They currently have a $80.00 target price on the stock, up from their previous target price of $71.00. Deutsche Bank’s target price suggests a potential downside of 1.61% from the company’s current price.
The analysts wrote, “Dealer spin-off to provide EPS accretion. ADP reported revenues of $3.07bn (10% Y/Y) and EPS of $0.63 compared to our est. of $3.03bn (8% Y/Y) and $0.63. Solid momentum in Employer Services (ES) and PEO partially offset by weaker than expected Dealer services. Positively, interest on funds held for clients is expected to turnaround in FY15 ($5-$15m Y/Y growth vs. $48m Y/Y decline in FY14) which will drive margin expansion and ADP has guided to 75-100bps of margin expansion in FY15 (compared to flat in FY14). The company expects 11 – 13% EPS growth in FY15 with further upside from the divestiture of dealer services. Accordingly, we are raising our FY15 EPS by $0.06 to $3.52 and introducing our FY16 EPS of $3.88. Maintain Hold.”
Automatic Data Processing (NASDAQ:ADP) traded up 0.17% during mid-day trading on Friday, hitting $81.45. The stock had a trading volume of 227,093 shares. Automatic Data Processing has a 52 week low of $69.76 and a 52 week high of $83.82. The stock’s 50-day moving average is $80.23 and its 200-day moving average is $78.0. The company has a market cap of $39.267 billion and a price-to-earnings ratio of 27.11.
Automatic Data Processing (NASDAQ:ADP) last released its earnings data on Thursday, July 31st. The company reported $0.63 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.63. The company had revenue of $3.10 billion for the quarter, compared to the consensus estimate of $3.03 billion. During the same quarter in the previous year, the company posted $0.55 earnings per share. The company’s revenue for the quarter was up 9.7% on a year-over-year basis. Analysts expect that Automatic Data Processing will post $3.51 EPS for the current fiscal year.
ADP has been the subject of a number of other recent research reports. Analysts at Bank of America reiterated a “buy” rating on shares of Automatic Data Processing in a research note on Friday, July 25th. They now have a $90.00 price target on the stock, down previously from $95.00. Separately, analysts at Zacks reiterated a “neutral” rating on shares of Automatic Data Processing in a research note on Thursday, July 10th. They now have a $84.00 price target on the stock. Finally, analysts at Goldman Sachs reiterated a “neutral” rating on shares of Automatic Data Processing in a research note on Tuesday, July 8th. Seven research analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. Automatic Data Processing currently has an average rating of “Hold” and an average price target of $83.00.
Automatic Data Processing, Inc (NASDAQ:ADP) is a provider of business outsourcing solutions.
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