ADP upgraded to Peer Perform from Underperform at Wolfe Research

Wolfe Research analyst Darrin Peller upgraded ADP (ADP) to Peer Perform from Underperform with no price target. While still “slightly cautious” on the jobs market and expecting unemployment to rise in 2024, the firm believes ADP should be able to weather mild turbulence in the jobs market. The firm believes that ADP’s diverse client base gives it a degree of protection compared to Paychex (PAYX) and sees guidance, particularly within the PEO business, being reset at “a more reasonable level” following Q1 earnings, the analyst tells investors.