Analysts' Perspectives on Automatic Data Processing
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
Updated: Oct 22 20250mins
Analyst Ratings Overview: In the last three months, four analysts have provided mixed ratings for Automatic Data Processing (ADP), with three analysts remaining indifferent and one somewhat bearish in the last 30 days, reflecting a shift in sentiment compared to previous months.
Price Target Adjustments: Analysts have adjusted their 12-month price targets for ADP, with an average target of $301.75, down from $310.00, indicating a cautious outlook despite some analysts raising their targets.
Company Performance Metrics: ADP has shown strong financial performance with a net margin of 17.76% and a return on equity (ROE) of 15.12%, although its revenue growth rate of 7.51% is below the industry average.
Debt Management Strategy: The company maintains a prudent financial strategy with a below-average debt-to-equity ratio of 1.46, showcasing effective debt management and a balanced approach to financial health.
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Analyst Views on ADP
Wall Street analysts forecast ADP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ADP is 293.58 USD with a low forecast of 245.00 USD and a high forecast of 332.00 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.
12 Analyst Rating
1 Buy
9 Hold
2 Sell
Hold
Current: 264.690
Low
245.00
Averages
293.58
High
332.00
Current: 264.690
Low
245.00
Averages
293.58
High
332.00
Morgan Stanley
NULL -> Overweight
maintain
2025-12-10
New
Reason
Morgan Stanley
Price Target
2025-12-10
New
maintain
NULL -> Overweight
Reason
Morgan Stanley raised the firm's price target on Aeroports de Paris to EUR 140 from EUR 139 and keeps an Overweight rating on the shares.
JPMorgan
Overweight -> Neutral
downgrade
2025-12-03
Reason
JPMorgan
Price Target
2025-12-03
downgrade
Overweight -> Neutral
Reason
JPMorgan downgraded Aeroports de Paris to Neutral from Overweight with a price target of EUR 132, up from EUR 128. The firm says the stock's catalysts have played out while the company's capex is likely to increase.
JPMorgan
Underweight
downgrade
$340 -> $295
2025-10-30
Reason
JPMorgan
Price Target
$340 -> $295
2025-10-30
downgrade
Underweight
Reason
JPMorgan lowered the firm's price target on ADP to $295 from $340 and keeps an Underweight rating on the shares. The firm kept its estimates largely unchanged post the fiscal Q1 report.
Jefferies
Hold
downgrade
$315 -> $245
2025-10-29
Reason
Jefferies
Price Target
$315 -> $245
2025-10-29
downgrade
Hold
Reason
Jefferies lowered the firm's price target on ADP to $245 from $315 and keeps a Hold rating on the shares. ADP delivered "solid results" in fiscal Q1, including better-than-consensus 7.1% revenue growth and 6.7% EPS growth, but the firm thinks the stock will struggle to maintain a premium multiple with the path ahead "looking tougher."
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About ADP
Automatic Data Processing, Inc. is a provider of cloud-based human capital management (HCM) solutions. Its segments include Employer Services and Professional Employer Organization (PEO). Its Employer Services segment serves clients ranging from single-employee small businesses to large enterprises with tens of thousands of employees around the world, offering a range of technology-based HCM solutions, including its cloud-based platforms, and human resource outsourcing (HRO) (other than PEO) solutions. Its offerings include Payroll Services, Benefits Administration, Talent Management, HR Management, Workforce Management, Compliance Services, Insurance Services and Retirement Services. Its PEO business, called ADP TotalSource, provides clients with guidance, technology, comprehensive employee benefits, risk management, safety, and workers’ compensation program. Its compensation management software supports the compensation planning needs.
About the author
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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.
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