S&P Capital IQ Reiterates its BUY Rating on Automatic Data Processing

October 14 00:00 2011

NEW YORK, October14 (RainbowNewsLine.com) – Analyst Dylan Cathers of S&P Capital IQ reiterates his BUY rating on the shares of Automatic Data Processing (NASDAQ: ADP). The 12-month target price is unchanged at $60.

Analyst Dylan Cathers, in a research note published yesterday mentions that, the company is due to report Sept-Q results on 26 Oct where he expects EPS of $0.60 on revenues of 2.4 billion.The company will witness some margin improvement this year, the analyst says. The analyst estimates FY12 EPS of $2.75 and FY13 EPS of $2.99. The analyst believes that Automatic Data Processing will continue to show low-teens growth in both payroll and PEO services and expects 2012 revenue growth rate of 8.0%.