ADP's Upbeat Q1 Results Earn Price Target Boost; Analyst Trims FIS Price Target On Dismal Q3

• Mizuho analyst Dan Dolev maintained Automatic Data Processing Inc (NASDAQ: ADP) with a Buy and raised the price target from $257 to $276.

• The company's Q1 results were strong.

• The company slightly raised guidance as higher client fund interest drove the overall increase in the outlook, likely offset by higher FX headwinds.

• From a macro perspective, management sounded constructive.

• However, it highlighted some caution, like softer bookings growth in international business, and continued to watch the demand environment in global markets.

• His revenue estimates increased slightly, but the rounded FY growth rate remains the same.

• Dolev maintained Fidelity National Information Services, Inc. (NYSE: FIS) with a Buy and lowered the price target from $105 to $90.

• FIS issued disappointing Q3 results and a subsequent profit warning.

• He remained constructive. Management flagged several issues as culprits for lowering its guide. The culprits included a slowing level of bank consolidation due to deteriorating credit markets, inflation, cost pressures impacting the expense base, and sales timing and execution due to continued elongation in more significant transactions.

• He noted FIS's recent significant cost reductions within its labor force as a first step in the turnaround.

• He lowered his 2023 expectations and price target.

• Price Action: ADP shares traded higher by 0.72% at $264.48 on the last check Friday.

Latest Ratings for FIS

Date	Firm	Action	From	To
Feb 2022	Mizuho	Maintains		Buy
Feb 2022	Morgan Stanley	Maintains		Equal-Weight
Feb 2022	Credit Suisse	Maintains		Outperform

View More Analyst Ratings for FIS

View the Latest Analyst Ratings

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