Paychex's fair value estimate has been raised from US$102.07 to US$105.43 per share, reflecting a modest lift as analysts weigh the potential upside from the Paycor acquisition against execution risks. Citi upgraded the stock to Buy and hiked its price target to US$140 from US$99, citing bookings trends, expected synergies from Paycor, and a 4.73% dividend yield. Stifel raised its target to US$110 from US$105 with a Hold rating, while JPMorgan increased its target to US$105 from US$100 but maintained an Underweight rating. On the bearish side, UBS trimmed its target to US$98 from US$100 with a Neutral rating, and TD Cowen lifted its target to US$98 from US$94 while keeping a Hold rating. The updated fair value model assumes long-term annual revenue growth of 6.66%, a net profit margin of 30.50%, a future P/E multiple of 19.73 times, and a discount rate of 7.62%.
Citigroup Inc.
JPMorgan Chase & Co
Stifel Financial Corporation
UBS Group AGPaychex IncFair value estimate raised and multiple analyst rating changes with price target adjustments.