Bloomberg the Company

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

Follow Us

Industry Products

Markets & Finance

Prudential Upgrades Paychex


Prudential upgrades payroll accounting firm Paychex (PAYX) to neutral.

Analyst Bryan Keane says he upgrades as fourth-quarter results and fiscal 2006 (ending May) guidance beat estimates on higher-than-expected float portfolio income and strong service revenue growth.

He notes in Nov. 2004, he had cut Paychex to underweight on belief shares needed revaluation to reflect maturing business model. He now thinks this is factored into its valuation.

Keane says double-digit total revenue growth appears sustainable over the long term with price increases, organic client growth, higher year-on-year float income, and strong ancillary services. He sees 12% total revenue growth in fiscal 2006 and boosts $1.10 earnings per share to $1.15.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus