Paychex price target raised to $137 from $133 at Morgan Stanley

Morgan Stanley raised the firm’s price target on Paychex (PAYX) to $137 from $133 and keeps an Equal Weight rating on the shares. Amid “a more conservative underwriting posture in the insurance agency” and events like hurricanes in Florida, Paychex “continues to execute well,” the analyst tells investors. Short interest had moderated of late, implying that a slight Q2 beat and FY25 outlook reiteration was “likely enough for shares to work on the print so long as out-of-business rates remained stable” and “that dynamic played out as anticipated,” the analyst added.