Automatic Data Processing: Sell-Off Resolves Valuation Concerns (Rating Upgrade)

2026-05-18 02:59:28 ET

Shares of Automatic Data Processing ( ADP ) have been a very poor performer over the past year, losing roughly a third of their value. Historically commanding an elevated multiple, ADP shares have been vulnerable to softer investor sentiment as markets grapple with the impact of AI on employment and some business services. I last covered ADP in January , rating the stock a "sell," and since then it has lost 14% while the market gained 6%. Indeed, shares are actually below my $225 price target, even as they have rebounded from their lows. With updated financials and an ever-changing macro outlook, now is a good time to revisit ADP....

Read the full article on Seeking Alpha

For further details see: