Paychex price target raised to $111 from $108 at BofA

BofA raised the firm’s price target on Paychex to $111 from $108 and keeps an Underperform rating on the shares. The analyst was surprised to see Paychex shares trading nearly flat and outperforming the S&P 500 after reporting a fiscal Q3 revenue miss, particularly in the Management Solutions segment, and providing a “tepid” initial 2025 outlook. The firm still sees better risk/reward elsewhere with unemployment on the rise and interest rates peaking.