ADP initiated with a Neutral at UBS

UBS initiated coverage of ADP with a Neutral rating and $235 price target. The analyst launched coverage of 10 companies in human capital management software with a “selective view.’ The firm sees a balanced risk/reward as late-cycle dynamics are offset by “ample growth and durable demand.” With more than half of the human capital management total addressable market still relying on in-house solutions or regional vendors and incumbents experiencing manageable levels of churn, UBS sees a durable growth trajectory for disruptors across the universe. It favors high-growth, rate-sensitive names and avoids temporary staffing and companies taking insurance risk.