Street View: Brokerages cut PT as Paychex posts higher Q1 expenses

Paychex

01/10/2025 13:01

** HR software provider Paychex PAYX.O reported on Tuesday that higher first-quarter expenses overshadowed its annual earnings forecast raise

** Shares down 0.7% at $125.9 premarket

** At least five brokerages cut PT

** Median PT of 16 analysts covering stock is $138.50; average rating is 'hold' - data compiled by LSEG

EXPENSE JUMP HINDERS ORGANIC GROWTH

** Jefferies ("hold," PT: $130) says while Q1 results were okay, company's organic growth lags behind and execution risk in upcoming quarters limits near-term upside

** J.P. Morgan ("NM," PT: $140) says main focus remains on whether Paycor and PEO can deliver faster growth as long-term debates remain and sentiment hinges on execution proof points

** BMO ("market perform," PT: $140) says business is stable but faces execution risks in key areas with improvements expected later in FY26

** Stifel ("hold," PT: $137) says company delivered steady results, reaffirmed revenue forecast and slightly raised EPS outlook, but still needs stronger growth in second half

 (Reporting by Anuj T in Bengaluru)

 ((anuj.t@thomsonreuters.com))