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Stock impact report

High Margins, Low Upside: Paychex, Inc. (PAYX) Gets a Hold [Yahoo! Finance]

Paychex, Inc. (PAYX) 
Last paychex, inc. earnings: 3/25 08:15 am Check Earnings Report
US:NASDAQ Investor Relations: investor.paychex.com
Company Research Source: Yahoo! Finance
Nabhan began coverage on Paychex, Inc. (NASDAQ:PAYX) with a new Hold rating, citing a blend of reasons, including the stock's premium valuation. The analyst views this valuation as restricting potential upside, even though it is supported by the company's high margin and free cash flow profile. Although the valuation appears fair, the risk–reward setup is viewed as neutral in these market conditions. The analyst further highlights the current labor market's sub-optimal state, which indicates declining major performance indicators and revised estimations, adding to his conservative stance. That's not it. The company's revenue model, particularly concerning hiring trends and customer base, still exhibits some degree of variability and thus limits the projections for the future. Paychex (PAYX) Slashes 9.4% on Dismal Earnings What drives investors to take an interest in Paychex, Inc. (NASDAQ:PAYX) is its recent acquisition of Paycor, which the analyst believes could be the future ca Show less Read more
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