From Financial Modeling Prep: 2024-10-02 14:26:00

Citi analysts reaffirmed a Neutral rating and $145 price target on Paychex (NASDAQ:PAYX) after Q1 revenue results met expectations, alleviating concerns about weak SMB hiring trends. The company beat EPS estimates by $0.04, driven by margin outperformance and improved tax outcomes. New AI features were praised for enhancing product penetration.

Post-earnings stock movement was supported by high short interest and easing ERTC headwinds, but analysts are cautious about potential risks to multiple expansion. Concerns about SMB hiring softness and aligning dividend growth with EPS growth over the next 1-2 years tempered enthusiasm for the stock.



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