JP Morgan Cuts Paychex Price Target to $125 Amid Underweight Rating
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 22 2025
0mins
Source: Benzinga
- Target Price Adjustment: JP Morgan has cut the price target for Paychex Inc from $140 to $125, with analyst Tien-Tsin Huang maintaining an Underweight rating, indicating a cautious outlook on the company's future performance.
- Market Reaction: Paychex shares closed at $112.28 on Friday, reflecting a negative market response to the target price adjustment, which may impact investor confidence.
- Competitive Landscape: Amid the current economic environment, Paychex faces competitive pressure from other HR management firms, and the target price cut could exacerbate concerns about its growth potential.
- Analyst Sentiment: JP Morgan's rating and target price adjustment may influence other analysts' perspectives, leading to a more cautious overall sentiment towards Paychex in the market.
Analyst Views on PAYX
Wall Street analysts forecast PAYX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PAYX is 135.00 USD with a low forecast of 126.00 USD and a high forecast of 150.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
0 Buy
10 Hold
3 Sell
Hold
Current: 109.660
Low
126.00
Averages
135.00
High
150.00
Current: 109.660
Low
126.00
Averages
135.00
High
150.00
About PAYX
Paychex, Inc. is a human capital management (HCM) company. The Company is engaged in delivering a full suite of technology and advisory services in human resources, employee benefit solutions, insurance, and payroll. It is a provider of integrated HCM solutions for human resources (HR), payroll, benefits, and insurance for small- to medium-sized businesses in the United States (U.S.) and parts of Europe. It supports its small-business clients by utilizing its proprietary, software as a service (SaaS) Paychex Flex platform and the Company’s SurePayroll SaaS-based solutions. Its HR solutions include HR packages, HR consulting, employee onboarding, hiring services, and artificial intelligence -assisted recruiting. Its payroll services include payroll packages, small business payroll, midsize to enterprise payroll, switch payroll companies, and payroll tax services. Its employee benefits services include Group health insurance, retirement services, and benefits administration services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
