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The Analyst Verdict: Automatic Data Processing In The Eyes Of 4 Experts

Author: Benzinga Insights | September 17, 2025 02:00pm

In the preceding three months, 4 analysts have released ratings for Automatic Data Processing (NASDAQ:ADP), presenting a wide array of perspectives from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 0 0 4 0 0
Last 30D 0 0 1 0 0
1M Ago 0 0 0 0 0
2M Ago 0 0 2 0 0
3M Ago 0 0 1 0 0

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $314.75, a high estimate of $340.00, and a low estimate of $290.00. Witnessing a positive shift, the current average has risen by 1.53% from the previous average price target of $310.00.

price target chart

Deciphering Analyst Ratings: An In-Depth Analysis

The standing of Automatic Data Processing among financial experts becomes clear 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 $290.00 $315.00
David Grossman Stifel Raises Hold $318.00 $305.00
James Faucette Morgan Stanley Raises Equal-Weight $311.00 $310.00
Daniel Jester BMO Capital Announces Market Perform $340.00 -

Key Insights:

  • Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Automatic Data Processing. This offers insight into analysts' perspectives on 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 Automatic Data Processing compared to the broader market.
  • Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Automatic Data Processing's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Automatic Data Processing's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Automatic Data Processing analyst ratings.

Get to Know Automatic Data Processing Better

Automatic Data Processing is a global technology company providing cloud-based human capital management solutions, enabling clients to better implement payroll, talent, time, tax, and benefits administration. Additionally, ADP provides human resource outsourcing solutions that permit customers to offload some of their traditional HR tasks. The company operates through two segments: employer services and professional employer organization services. Employer services consist of the company's HCM products as well as a la carte HRO solutions. PEO services contain ADP's comprehensive HRO solution, where it acts as a co-employer with its customer. As of fiscal 2025, ADP serves over 1.1 million clients and pays over 42 million workers across 140 countries.

Key Indicators: Automatic Data Processing's Financial Health

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: Automatic Data Processing displayed positive results in 3M. As of 30 June, 2025, the company achieved a solid revenue growth rate of approximately 7.51%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Net Margin: Automatic Data Processing's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 17.76% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Automatic Data Processing's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 15.12% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Automatic Data Processing's ROA stands out, surpassing industry averages. With an impressive ROA of 1.66%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: With a below-average debt-to-equity ratio of 1.46, Automatic Data Processing adopts a prudent financial strategy, indicating a balanced approach to debt management.

The Significance of Analyst Ratings Explained

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

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

Posted In: ADP

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