RBC Capital Reiterates Sector Perform Rating on Paychex (PAYX)

RBC Capital analyst Ashish Sabadra reiterated a Sector Perform rating and {REMOVEPT} price target on Paychex (NASDAQ: PAYX).

The analyst commented: "PEO Momentum; Focus on Management Solution Inflection in FY27; We expect roughly in-line/modest 4Q26 beat and FY27 guidance in-line with estimates. Management Solutions should benefit from double-digit bookings growth, stable pricing increases, revenue synergies, and Paycor's upper-single-digit organic growth. PEO revenue growth is expected to soften in 4Q26 due to timing dynamics but should reaccelerate in FY27, driven by high single-digit WSE growth. Interest on Client Funds will face tougher year-over-year comparisons in 2Q27, though the higher-for-longer rate environment should provide ongoing tailwinds. Operating leverage and AI-driven efficiency gains, partially offset by incremental investments, should drive 25–50bps of margin expansion and 7–9% EPS growth in FY27."

For an analyst ratings summary and ratings history on Paychex click here. For more ratings news on Paychex click here.

Shares of Paychex closed at $94.43 yesterday.

You May Also Be Interested In

• Tesla Crash Into Texas Home Now Under Federal Safety Probe - WSJ
• MacroGenics to receive $24.5M milestone from Sanofi on FDA approval
• Lockheed Martin wins $83 million Army missile contract