Paychex just upgraded at Barclays, here’s why

Barclays upgraded Paychex to Equal Weight from Underweight with a price target of $126, up from $107. The firm believes the company’s Professional Employer Organization growth will reaccelerate in 2024. PEO headwinds are more cyclical than structural in nature, the analyst tells investors in a research note. Barclays says a potential rise in unemployment is somewhat priced into Paychex shares, so the stock should see more stability over the next 12-months.