ADP price target raised to $225 from $220 at Wolfe Research

Wolfe Research analyst Darrin Peller raised the firm’s price target on ADP to $225 from $220 and keeps an Underperform rating on the shares. The analyst downgraded the IT Services sector to Market Underweight from Market Weight. In the backdrop of higher interest rates and an impending recession, "our criteria for recommending names has increased considerably," Peller tells investors in a research note. The analyst continues to approach his coverage as a barbell, with select picks across growth, core/GARP, and value. Street estimates still have to come down a bit more, growth stocks will likely continue facing headwinds until we have a clearer view of peak Fed rate expectations, and/or we see a greater focus on profitability, writes Peller.