William Blair Maintains a Hold Rating for Paychex, Inc. (PAYX)
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Paychex, Inc. (NASDAQ:PAYX) is one of the Profitable SaaS Companies for 2026. On February 10, Andrew Nicholas from William Blair reiterated a Hold rating on the stock without disclosing any price target. Earlier, on January 26, Ramsey El Assal from Cantor Fitzgerald initiated Paychex, Inc. (NASDAQ:PAYX) with a Sell rating and a $98 price target.
Cantor Fitzgerald doubts the ability of Paychex to speed up its organic revenue growth as the competition in the small and medium business SMB continues to increase. In addition, the economic headwinds also add further concerns. The firm also highlighted the company’s recent acquisition of Paycor, which it believes positions Paychex in larger markets. However, Cantor calls the deal a largely defensive move with unclear benefits for long-term organic growth.
During fiscal Q2 2026, the company delivered 18.28% top-line growth along with a 21% increase in adjusted operating income. Management raised the lower end of the adjusted diluted EPS outlook for 2026 from 9% growth to 10%, as the company expects interest on funds held for clients to be at the high end of the anticipated range.
Overall, Wall Street remains bullish on Paychex, Inc. (NASDAQ:PAYX), with analysts’ 12-month median price target reflecting more than 21% upside from the current level.
Paychex, Inc. (NASDAQ:PAYX) provides integrated human capital management (HCM) solutions focused on payroll, HR, benefits, and insurance for small- to medium-sized businesses mainly in the U.S. and Europe. It leverages its SaaS platforms like Paychex Flex and SurePayroll to offer services.
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Disclosure: None. This article is originally published at Insider Monkey.
