ADP price target lowered to $250 from $260 at Jefferies

Jefferies analyst Samad Samana lowered the firm’s price target on ADP to $250 from $260 and keeps a Hold rating on the shares. At peak yields and full employment, the analyst believes the human resources and payroll group will be more challenged to drive growth at historical levels in 2024. While the underperformance in 2023 and valuation compression somewhat reflects this, the firm sees few catalysts for meaningful upside to fundamentals in 2024, the analyst added. The market is rewarding the durability, longevity, and consistently strong cash generation of ADP despite its lower growth than some peers, the analyst added.