JPMorgan upgraded Paychex to Neutral from Underweight on September 24 and raised its price target to $115 from $105, calling the stock's post-earnings sell-off excessive after shares fell more than 5% following fiscal first-quarter 2027 results. Revenue from Professional Employer Organization and Insurance Solutions rose 12% year over year to $367.6 million in the quarter, driven by higher worksite employees and increased PEO insurance volumes. Paychex also raised its fiscal 2027 revenue-growth guidance for PEO and Insurance Solutions to 7% to 8%, from 6% to 7% previously, citing strong conversion rates and referral activity. The company is folding artificial intelligence into its human capital management platform through its WISE engine and WISE Hire agentic recruiting solution. Hedge fund holdings in Paychex slipped to 40 funds from 43 in the prior quarter, while short interest rose to 19.82 million shares as of September 15, about 5.57% of shares outstanding.
Paychex IncJPMorgan upgraded Paychex to Neutral and raised its price target to $115, calling the post-earnings sell-off excessive.
JPMorgan Chase & Co
