ADP selloff after Q1 earnings ‘overdone,’ says Jefferies

Jefferies notes that ADP‘s fiscal Q1 revenue met consensus, while its EPS beat “modestly.” While ADP cut the FY24 PEO revenue growth outlook due to sluggish WSE growth, consolidated FY24 guidance for revenue and EPS growth was unchanged, added the analyst. Investors were disappointed that fiscal Q1 growth was not better and that FY24 EPS growth was not revised higher, but the analyst sees the selloff as “overdone.” Jefferies has a Hold rating and $260 price target on ADP shares.