Assessing Paychex: Insights From 8 Financial Analysts

In the preceding three months, 8 analysts have released ratings for Paychex (NASDAQ:PAYX), presenting a wide array of perspectives from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

	Bullish	Somewhat Bullish	Indifferent	Somewhat Bearish	Bearish
Total Ratings	0	0	7	1	0
Last 30D	0	0	1	0	0
1M Ago	0	0	1	0	0
2M Ago	0	0	0	1	0
3M Ago	0	0	5	0	0

Insights from analysts' 12-month price targets are revealed, presenting an average target of $148.25, a high estimate of $160.00, and a low estimate of $140.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 3.02%.

Decoding Analyst Ratings: A Detailed Look

A clear picture of Paychex's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst	Analyst Firm	Action Taken	Rating	Current Price Target	Prior Price Target
Kevin Mcveigh	UBS	Lowers	Neutral	$140.00	$148.00
Peter Christiansen	Citigroup	Lowers	Neutral	$148.00	$158.00
Tien-Tsin Huang	JP Morgan	Raises	Underweight	$153.00	$148.00
Daniel Jester	BMO Capital	Announces	Market Perform	$160.00	-
James Faucette	Morgan Stanley	Lowers	Equal-Weight	$148.00	$150.00
David Grossman	Stifel	Lowers	Hold	$152.00	$156.00
Kevin Mcveigh	UBS	Lowers	Neutral	$145.00	$155.00
Samad Samana	Jefferies	Lowers	Hold	$140.00	$155.00

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Paychex. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Paychex compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Paychex's stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of Paychex's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Paychex analyst ratings.

Get to Know Paychex Better

Paychex is a technology company providing human capital management solutions, enabling clients to better implement payroll, talent, time, tax, and benefits administration. It has a diverse set of product offerings addressing client needs. Aside from its traditional cloud-based payroll and HCM software offering, which accounts for close to half of total revenue, the company provides outsourcing options. Paychex's administrative service organization and professional employer organization accounts generate over 40% of sales. The balance of revenue is generated through retirement services, insurance solutions, and other products. In fiscal 2025, the company had 800,000 clients and almost 2.5 million worksite employees across its ASO and PEO.

Paychex: Delving into Financials

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Growth: Paychex displayed positive results in 3M. As of 31 May, 2025, the company achieved a solid revenue growth rate of approximately 10.21%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 20.82%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 7.21%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Paychex's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 2.14%, the company showcases efficient use of assets and strong financial health.

Debt Management: Paychex's debt-to-equity ratio is below the industry average at 1.22, reflecting a lower dependency on debt financing and a more conservative financial approach.

How Are Analyst Ratings Determined?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.