Morgan Stanley Issues Pessimistic Forecast for Paychex (NASDAQ:PAYX) Stock Price

Paychex (NASDAQ:PAYX) had its price objective dropped by equities research analysts at Morgan Stanley from $133.00 to $123.00 in a research report issued on Monday, MarketBeat.com reports. The firm currently has an “equal weight” rating on the business services provider’s stock. Morgan Stanley’s price target would suggest a potential upside of 7.80% from the company’s current price.

A number of other analysts also recently issued reports on PAYX. TD Cowen decreased their target price on Paychex from $126.00 to $114.00 and set a “hold” rating for the company in a research report on Monday, December 1st. Royal Bank Of Canada reduced their target price on Paychex from $150.00 to $125.00 and set a “sector perform” rating for the company in a report on Friday, December 5th. Citigroup decreased their price target on Paychex from $139.00 to $120.00 and set a “neutral” rating on the stock in a research report on Monday. Weiss Ratings restated a “hold (c)” rating on shares of Paychex in a research report on Monday, December 15th. Finally, Stephens raised shares of Paychex to a “hold” rating in a report on Tuesday, October 7th. Fourteen research analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Reduce” and an average price target of $127.00.

Paychex Stock Performance

PAYX stock opened at $114.10 on Monday. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 1.17. The firm has a market cap of $41.06 billion, a PE ratio of 25.87 and a beta of 0.91. The business has a 50 day moving average of $115.54 and a 200-day moving average of $130.98. Paychex has a 12-month low of $108.00 and a 12-month high of $161.24.

Paychex (NASDAQ:PAYX) last posted its quarterly earnings data on Friday, December 19th. The business services provider reported $1.26 earnings per share for the quarter, topping the consensus estimate of $1.23 by $0.03. The business had revenue of $1.56 billion for the quarter, compared to analysts’ expectations of $1.55 billion. Paychex had a return on equity of 46.38% and a net margin of 26.45%.The business’s revenue was up 18.3% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.14 earnings per share. Paychex has set its FY 2026 guidance at 5.480-5.530 EPS. As a group, sell-side analysts expect that Paychex will post 4.99 earnings per share for the current year.

Institutional Trading of Paychex

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Triumph Capital Management bought a new stake in shares of Paychex in the 3rd quarter worth approximately $76,000. Farmers National Bank purchased a new position in shares of Paychex during the 3rd quarter worth approximately $315,000. Allworth Financial LP raised its position in shares of Paychex by 1.1% in the 3rd quarter. Allworth Financial LP now owns 11,884 shares of the business services provider’s stock worth $1,506,000 after acquiring an additional 124 shares in the last quarter. IFP Advisors Inc lifted its stake in shares of Paychex by 8.5% in the 3rd quarter. IFP Advisors Inc now owns 7,468 shares of the business services provider’s stock valued at $947,000 after purchasing an additional 586 shares during the period. Finally, Groupama Asset Managment boosted its position in shares of Paychex by 70.4% during the third quarter. Groupama Asset Managment now owns 6,084 shares of the business services provider’s stock valued at $771,000 after purchasing an additional 2,514 shares in the last quarter. Institutional investors own 83.47% of the company’s stock.

Paychex News Summary

Here are the key news stories impacting Paychex this week:

• Positive Sentiment: MarketBeat argues PAYX is “out of favor” but presents a value opportunity — cites 3.8% dividend yield, strong cash flow, share buybacks, AI product rollout and a potential technical floor near $110 that could limit downside and set up a rebound. Paychex Is Out of Favor—And That’s the Opportunity
• Neutral Sentiment: Jim Cramer flagged PAYX as a useful read on employment trends — his coverage brings attention to the company (and notes PAYX “tends to sell off on earnings”), which can amplify short‑term volatility around results. Jim Cramer Notes “Paychex Tends to Sell off on Earnings”
• Neutral Sentiment: Zacks and MarketWatch coverage of the recent Q2 fiscal 2026 results and metrics provide context but are mixed — revenue and EPS commentary keeps attention on growth and margin trends without adding a clear directional push. Paychex (PAYX) Reports Q2 Earnings
• Neutral Sentiment: Citigroup reaffirmed a neutral rating on PAYX, keeping institutional guidance mixed and leaving the stock sensitive to fresh data or guidance changes. Citigroup maintains Paychex (PAYX) neutral recommendation
• Negative Sentiment: Multiple firms trimmed price targets and ratings this week (JPMorgan, Morgan Stanley, Stephens), reducing near‑term upside expectations and pressuring the stock. Stephens adjusts price target on Paychex to $125
• Negative Sentiment: Benzinga and others report analysts slashed forecasts after Q2 results, signaling worries about near‑term growth and prompting some to cut earnings estimates — a direct negative for valuation and momentum. Paychex Analysts Slash Their Forecasts Following Q2 Earnings
• Negative Sentiment: MarketWatch notes PAYX underperformed peers recently despite some daily gains, underscoring sector rotation and the impact of downgrades on relative performance. Paychex Inc. stock underperforms

About Paychex

Paychex, Inc, founded in 1971 by B. Thomas “Tom” Golisano and headquartered in Rochester, New York, is a provider of payroll, human resources, and benefits outsourcing solutions for small- and medium-sized businesses. The company’s core services include payroll processing and tax filing, employee benefits administration, retirement services, and workers’ compensation administration, designed to simplify back-office operations and help clients comply with regulatory and tax requirements.

Paychex offers an integrated technology platform, marketed under the Paychex Flex brand, which delivers cloud-based payroll, HR, time and attendance, and reporting tools.