Automatic Data Processing (NASDAQ:ADP) Price Target Raised to $286.00

Key Points

• Morgan Stanley raised ADP’s price target from $240 to $286 while maintaining an “equal weight” rating, implying 9.55% potential upside from the prior close.
• Analyst views remain mixed: Guggenheim upgraded ADP to “buy” with a $300 target, while the broader consensus is “hold” with an average target of $268.36.
• ADP exceeded quarterly expectations, reporting $2.64 in earnings per share and $5.47 billion in revenue, with revenue up 6.8% year over year.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) had its price target increased by investment analysts at Morgan Stanley from $240.00 to $286.00 in a research report issued on Thursday,Benzinga reports. The firm presently has an "equal weight" rating on the business services provider's stock. Morgan Stanley's target price suggests a potential upside of 9.55% from the stock's previous close.

ADP has been the topic of several other research reports. Wells Fargo & Company raised their target price on shares of Automatic Data Processing from $248.00 to $283.00 and gave the stock an "equal weight" rating in a report on Thursday. Guggenheim lifted their price target on Automatic Data Processing from $270.00 to $300.00 and gave the company a "buy" rating in a research report on Thursday. Weiss Ratings upgraded Automatic Data Processing from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, July 21st. UBS Group increased their target price on shares of Automatic Data Processing from $260.00 to $270.00 and gave the company a "neutral" rating in a research report on Wednesday, July 22nd. Finally, Robert W. Baird dropped their target price on shares of Automatic Data Processing from $300.00 to $270.00 in a report on Thursday, April 30th. Three analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $268.36.

Automatic Data Processing Stock Performance

Shares of Automatic Data Processing stock traded down $12.30 during trading on Thursday, hitting $261.07. 1,263,422 shares of the stock were exchanged, compared to its average volume of 3,147,027. Automatic Data Processing has a 1-year low of $188.16 and a 1-year high of $315.26. The stock has a market capitalization of $104.36 billion, a price-to-earnings ratio of 24.36 and a beta of 0.83. The company has a fifty day moving average price of $234.18 and a 200-day moving average price of $224.32. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.63.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The business services provider reported $2.64 earnings per share for the quarter, beating analysts' consensus estimates of $2.59 by $0.05. The business had revenue of $5.47 billion during the quarter, compared to the consensus estimate of $5.44 billion. Automatic Data Processing had a return on equity of 68.82% and a net margin of 20.12%.Automatic Data Processing's quarterly revenue was up 6.8% on a year-over-year basis. During the same period in the prior year, the business posted $2.26 earnings per share. Automatic Data Processing has set its FY 2027 guidance at 12.120-12.340 EPS. As a group, equities analysts predict that Automatic Data Processing will post 11.08 EPS for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Northcape Wealth Management LLC lifted its holdings in Automatic Data Processing by 0.6% in the 4th quarter. Northcape Wealth Management LLC now owns 6,577 shares of the business services provider's stock worth $1,692,000 after buying an additional 39 shares during the period. Rathbones Group PLC grew its holdings in Automatic Data Processing by 1.1% during the 4th quarter. Rathbones Group PLC now owns 4,027 shares of the business services provider's stock worth $1,036,000 after acquiring an additional 42 shares in the last quarter. Zullo Investment Group Inc. lifted its position in Automatic Data Processing by 2.3% during the fourth quarter. Zullo Investment Group Inc. now owns 1,885 shares of the business services provider's stock valued at $485,000 after purchasing an additional 42 shares during the period. Trilogy Capital Inc. increased its holdings in Automatic Data Processing by 5.3% in the 4th quarter. Trilogy Capital Inc. now owns 850 shares of the business services provider's stock worth $219,000 after acquiring an additional 43 shares in the last quarter. Finally, Blossom Wealth Management boosted its stake in Automatic Data Processing by 3.1% during the fourth quarter. Blossom Wealth Management now owns 1,470 shares of the business services provider's stock worth $378,000 after buying an additional 44 shares during the last quarter. Institutional investors own 80.03% of the company's stock.

Key Automatic Data Processing News

Here are the key news stories impacting Automatic Data Processing this week:

• Positive Sentiment: Quarterly results beat expectations: ADP reported fiscal Q4 earnings of $2.64 per share versus the $2.59 consensus estimate, while revenue rose 6.8% year over year to $5.47 billion, exceeding forecasts of $5.44 billion. Earnings increased from $2.26 per share in the prior-year quarter, supported by broad-based growth, client funds income and margin improvement. ADP Q4 Earnings Beat Estimates
• Positive Sentiment: Fiscal 2027 outlook remains constructive: Management guided to earnings per share of $12.12-$12.34 and revenue of $23.0-$23.3 billion, broadly in line with Wall Street expectations. The company expects continued growth in employer services and human resources outsourcing. ADP Reports Fourth Quarter and Fiscal 2026 Results
• Positive Sentiment: Analysts raised price targets: Guggenheim increased its target from $270 to $300 and upgraded ADP to “buy.” Wells Fargo raised its target from $248 to $283 while maintaining an “equal weight” rating, and BMO lifted its target from $248 to $305 but retained a “market perform” view. These revisions indicate improved earnings expectations, although ratings remain mixed.
• Neutral Sentiment: Post-earnings valuation debate: Recent commentary says the earnings-driven rally has closed much of ADP’s valuation discount. Some analysts still view the stock as attractive, but the stronger share price leaves less room for upside if growth or guidance moderates. ADP Post-Earnings Valuation Analysis
• Negative Sentiment: Broader market weakness is weighing on the stock: A sharp oil-price spike tied to renewed U.S.-Iran tensions pressured the Nasdaq and broader equities ahead of the Federal Reserve’s rate decision, potentially offsetting ADP’s company-specific positives.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc (ADP) is a global provider of cloud-based human capital management (HCM) and payroll solutions. Founded in 1949 and headquartered in Roseland, New Jersey, ADP began as a payroll processing company and has evolved into a diversified provider of workforce management, HR, benefits administration, tax and compliance services, and analytics for employers of all sizes.

ADP's product portfolio includes payroll processing and tax filing, time and attendance systems, benefits administration, talent management, and HR outsourcing.

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