Cantor Fitzgerald Says Macro Risks May Be Overstated for Automatic Data Processing (ADP)

With an annual dividend yield of 3.46%, Automatic Data Processing, Inc. (NASDAQ:ADP) is included among the 10 Best High-Yield Dividend Growth Stocks to Buy Right Now.

On April 21, Cantor Fitzgerald lowered the firm’s price recommendation on Automatic Data Processing, Inc. (NASDAQ:ADP) to $244 from $306. It reiterated an Overweight rating on the shares. Despite concerns about a broader macro slowdown, the analyst said recent bank results and company commentary point to relatively stable consumer spending. The note added that while thematic headwinds have weighed on the sector, these risks appear overstated. Q1 estimates look largely achievable, with forward guidance and developments in the Middle East expected to act as key catalysts.

On April 7, BMO Capital analyst Daniel Jester lowered the firm’s price goal on ADP to $234 from $281 and kept a Market Perform rating on the shares. The update came as part of a broader research note previewing Q1 in Human Capital Management (HCM). Shares have been soft heading into Q3 results due later this month. This reflects a mix of cyclical and structural growth concerns, which continue to pressure the outlook for estimates. Based on intra-quarter data, read-throughs from Paychex, and recent discussions with industry participants, BMO expects modest upside in ADP’s Q3 results, but not enough to ease its near-term caution, the analyst said.

Automatic Data Processing, Inc. (NASDAQ:ADP) provides cloud-based human capital management solutions. Its business is organized into Employer Services and Professional Employer Organization (PEO) segments.

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