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.
Joseph D. Foresi
617-557-2972
About the Author: Ben Trowbridge is an accomplished Outsourcing Consultant with extensive experience in outsourcing and managed services. As a former EY Partner and CEO of Alsbridge, he built successful practices in Transformational Outsourcing, BPO, IT Outsourcing, and Cybersecurity Managed Services. Throughout his career, Ben has advised a broad range of clients on outsourcing and global business services strategy and transactions. As the current CEO of the Outsourcing Center, he provides valuable insights and guidance to buyers and managed services executives. Contact him at ben.trowbridge@outsourcingcenter.com.