BMO Capital Boosts Price Target on Automatic Data Processing (ADP)

BMO Capital Boosts Price Target on Automatic Data Processing (ADP)


Following a meeting with Automatic Data Processing (ADP) management, analysts at BMO Capital raised the price target on the business solutions provider.

The analysts maintain an “Outperform” rating of ADP and now see shares reaching $68, up from the previous target of $65. This new valuation suggests a 9% upside to Wednesday’s closing price of $62.30.

A BMO Capital analyst stated, “Owing to Regulation FD, there were no new meaningful disclosures, in our view. However, the conversation provided more insight into some aspects of ADP’s strategy and opportunities, specifically, how management is addressing the competitive threat from cloud-based HCM providers, potential opportunities from Obamacare implementation, and some thoughts about where Dealer Services fits into the overall core strategy.”

Automatic Data Processing shares were up 69 cents, or +1.10%, during morning trading on Thursday. The stock is up +16.20% over the past twelve months.

The Bottom Line
Shares of ADP (ADP) have a dividend yield of 2.76% based on Thursday’s intraday trading price of $62.99 and the company’s annualized dividend payout of $1.74 per share.

Automatic Data Processing (ADP) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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