-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our 12-month target price by $50 to $235, valuing shares at 20.1x our next-12-month EPS estimate, a discount to ADP's five-year average forward P/E of 28.5x. We increase our FY 26 EPS estimate by $0.06 to $11.05 and keep FY 27's at $11.94 on respective revenue forecasts of $21.87B (+6%) and $23.03B (+5%). Management's raised guidance across multiple metrics reflects growing confidence in the business model's resilience and the client funds strategy's trajectory. The company increased full-year FY 26 revenue growth expectations to 6%-7% (from approximately 6%) and adjusted diluted EPS growth to 10%-11% (from 9%-10%). Additionally, management raised adjusted EBIT margin expansion guidance to 70 bps-80 bps (from 50 bps-70 bps) and improved U.S. pays per control expectations to approximately 1% (from flat), suggesting continued cautious optimism about employment trends while maintaining focus on the client funds investment strategy as the primary value driver.