Stifel Adjusts Automatic Data Processing (ADP) Price Target, Keeps Neutral Stance

Automatic Data Processing, Inc. (NASDAQ:ADP) is included among the 13 Best NASDAQ Dividend Stocks to Buy Now.

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On February 9, Stifel expert David Grossman lowered his terms proposal connected Automatic Data Processing, Inc. (NASDAQ:ADP) to $270 from $280. The expert maintained a Hold standing connected the shares. He noted that the banal is presently trading astatine a 17% premium to the equal-weight S&P 500. Even so, helium described the valuation arsenic offering a “compelling risk/reward,” fixed ADP’s unchangeable concern exemplary and its quality to present accordant high-single to low-double digit growth.

During ADP’s fiscal Q2 2026 net call, President and CEO Maria Black said the institution delivered coagulated results. Revenue accrued 6%, portion adjusted EBIT borderline expanded by 80 ground points. Adjusted net per stock roseate 11%. She said the show was supported by spot crossed planetary markets, US endeavor clients, compliance services, and some the tiny concern and mid-market segments. Black besides addressed lawsuit retention and satisfaction. She said the Employer Services retention complaint came successful arsenic expected, contempt a flimsy decline. At the aforesaid time, lawsuit restitution reached a grounds high, with the institution reporting the strongest quarterly restitution levels successful its history.

She besides pointed to continued advancement with ADP’s newer platforms. Workforce Now Next Gen gained traction among mid-market clients and reached a cardinal milestone with its archetypal merchantability to a lawsuit with much than 1,000 employees. In the endeavor segment, Lyric continued to execute well, with much than 70% of caller bookings and pipeline enactment tied to caller lawsuit wins.

Black besides highlighted the interaction of ADP’s acquisition of WorkForce Software successful October 2024. The woody helped enactment the rollout of the ADP WorkForce Suite, and she said the institution is already seeing aboriginal benefits. Several deals completed during the 4th included the WorkForce Suite arsenic portion of the wide solution.

Automatic Data Processing, Inc. (NASDAQ:ADP) provides cloud-based quality superior absorption solutions. Its services assistance businesses negociate payroll, workforce administration, and compliance. The institution serves a wide scope of clients, from tiny businesses with a azygous worker to ample planetary enterprises.

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