Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Markets & Finance

CIBC Raises Paychex to Buy


CIBC World Markets upgraded Paychex (PAYX) to buy from hold.

Analyst Robert Maina says his upgrade is based on improving fundamentals. He cites three factors: First, headline news about the economy has improved since December. Second, interest rates have clearly bottomed. Third, the small employer payroll market has the best long-term growth potential. He notes that the stock been stuck in a trading range for the past year. Given signs that the economy is in early stages of improving, Maina encourages investors to buy the stock ahead of further news of economic rebound.

He believes that the company can grow revenues, EPS at a compounded annual growth rate of 13% and 17% respectively, over the next five years. Maina sees $0.73 fiscal 2002 (May) EPS, $0.83 EPS in fiscal 2003 and $0.99 EPS in fiscal 2004. He sets a $49 price target on the stock.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus