Stifel Nicolaus Boosts Automatic Data Processing (NASDAQ:ADP) Price Target to $285.00

Key Points

• Stifel Nicolaus raised ADP’s price target from $260 to $285 while maintaining a “hold” rating, implying approximately 9.15% upside from the reported share price.
• ADP reported quarterly results above expectations, with EPS of $2.64 versus the $2.59 consensus and revenue of $5.47 billion, up 6.8% year over year.
• Analyst sentiment remains mixed: ADP has an overall “hold” consensus rating and an average price target of $267.50, despite several firms recently raising their targets.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) had its price objective lifted by Stifel Nicolaus from $260.00 to $285.00 in a research report issued on Thursday,Benzinga reports. The firm presently has a "hold" rating on the business services provider's stock. Stifel Nicolaus' target price points to a potential upside of 9.15% from the company's current price.

Other analysts also recently issued research reports about the company. Wells Fargo & Company boosted their price objective on Automatic Data Processing from $248.00 to $283.00 and gave the stock an "equal weight" rating in a report on Thursday. BMO Capital Markets lifted their target price on shares of Automatic Data Processing from $248.00 to $305.00 and gave the stock a "market perform" rating in a research report on Wednesday. Jefferies Financial Group cut their price target on shares of Automatic Data Processing from $230.00 to $190.00 in a report on Thursday, April 30th. Argus reduced their price target on shares of Automatic Data Processing from $300.00 to $240.00 and set a "buy" rating for the company in a research report on Tuesday, May 5th. Finally, Morgan Stanley decreased their price objective on shares of Automatic Data Processing from $311.00 to $274.00 and set an "equal weight" rating for the company in a research note on Tuesday, April 28th. Three analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $267.50.

Automatic Data Processing Price Performance

Shares of ADP traded down $12.27 during trading hours on Thursday, hitting $261.10. 1,204,396 shares of the company were exchanged, compared to its average volume of 3,146,721. The company has a debt-to-equity ratio of 0.63, a current ratio of 1.04 and a quick ratio of 1.04. The company has a market capitalization of $104.37 billion, a PE ratio of 24.34 and a beta of 0.83. The firm has a fifty day simple moving average of $234.18 and a 200-day simple moving average of $224.32. Automatic Data Processing has a one year low of $188.16 and a one year high of $315.26.

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

Hedge Funds Weigh In On Automatic Data Processing

A number of large investors have recently made changes to their positions in ADP. Regent Peak Wealth Advisors LLC grew its holdings in shares of Automatic Data Processing by 3.4% during the 2nd quarter. Regent Peak Wealth Advisors LLC now owns 2,121 shares of the business services provider's stock valued at $475,000 after acquiring an additional 69 shares in the last quarter. Bank & Trust Co boosted its position in Automatic Data Processing by 1.3% during the second quarter. Bank & Trust Co now owns 3,908 shares of the business services provider's stock valued at $875,000 after purchasing an additional 50 shares during the last quarter. Annex Advisory Services LLC boosted its position in Automatic Data Processing by 3.9% during the second quarter. Annex Advisory Services LLC now owns 2,947 shares of the business services provider's stock valued at $660,000 after purchasing an additional 111 shares during the last quarter. Whitener Capital Management Inc. purchased a new position in Automatic Data Processing in the second quarter valued at about $207,000. Finally, Tema ETFs LLC grew its stake in Automatic Data Processing by 9.3% in the second quarter. Tema ETFs LLC now owns 6,837 shares of the business services provider's stock valued at $1,531,000 after purchasing an additional 580 shares in the last quarter. Institutional investors and hedge funds own 80.03% of the company's stock.

Automatic Data Processing News Summary

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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