From Yahoo Finance: 2025-06-16 10:50:00

Paychex, Inc. (NASDAQ:PAYX) is considered one of the best 52-week high stocks to buy by analysts, with Morgan Stanley maintaining an ‘Equal Weight’ rating and $150 price target. The firm’s confidence stems from the recent acquisition of PayCor for $4.1 billion, aimed at enhancing AI technology and service capabilities.

The acquisition of PayCor is expected to slightly reduce forecasted diluted earnings per share for fiscal 2026 and 2027 by 5% and 3%, respectively. However, Morgan Stanley remains optimistic, raising the earnings multiple to 27 times from 25 times and reiterating the $150 price target.

Morgan Stanley believes the PayCor integration will expand Paychex’s total addressable market, leading to increased demand and employment opportunities. The strategic move is set to broaden service offerings, reach new customer segments, and strengthen the company’s position in the market.

Paychex, Inc. (NASDAQ:PAYX) offers integrated human capital management solutions for small to medium-sized businesses, including payroll, benefits, HR, and insurance services. While PAYX shows investment potential, other AI stocks may offer greater upside and less downside risk in the current market landscape.



Read more at Yahoo Finance: Morgan Stanley Affirms ‘Equal Weight’ on Paychex on PayCor Integration