Automatic Data Processing – Market Analysis

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ADP Looking to Innovate. Interest Rates Continue to be a Drag.
INVESTMENT CONCLUSION:We attended the ADP analyst day held in NYC today. Our main takeaways: business is overall fundamentally sound (Europe still difficult), ADP is focused on innovation & improving its technology platforms, the current interest rate environment should continue to weigh on results, and management's goal is to deliver 12% in total shareholder return. We continue to look for a direct driver of results above current expectations, which will be necessary for stock outperformance from present levels given valuation. We remain NEUTRAL.

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Joseph D. Foresi
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