ADP Analyst Upgrades Stock Before Q2 Earnings, But Still Favors Visa And Mastercard
Portfolio Pulse from Priya Nigam
BofA Securities analyst Jason Kupferberg upgraded Automatic Data Processing (ADP) from Underperform to Neutral and raised the price target from $217 to $243 ahead of the company's Q2 earnings report on Jan. 31. Despite the upgrade, Kupferberg prefers Visa (V) and Mastercard (MA), rating them as Buy due to their stronger competitive moats, longer-term tailwinds, and higher growth rates. ADP shares have underperformed the S&P500 by approximately 2,400 basis points in 2023.
January 17, 2024 | 4:56 pm
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POSITIVE IMPACT
ADP was upgraded from Underperform to Neutral with a price target increase from $217 to $243 by BofA Securities analyst Jason Kupferberg.
The upgrade and increased price target for ADP suggest a more favorable outlook from the analyst, which could lead to increased investor confidence and a potential short-term rise in the stock price.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 90
POSITIVE IMPACT
Mastercard Inc. is also favored by analyst Jason Kupferberg, who has given it a Buy rating for similar reasons as Visa.
The analyst's preference for Mastercard and the Buy rating could have a positive impact on the stock's performance in the short term, similar to Visa.
CONFIDENCE 75
IMPORTANCE 65
RELEVANCE 70
POSITIVE IMPACT
Visa Inc. is preferred over ADP by analyst Jason Kupferberg, who rates Visa as Buy due to its competitive advantages and growth potential.
The preference for Visa over ADP by the analyst, along with the mention of Visa's competitive moats and growth rates, could positively influence Visa's stock in the short term.
CONFIDENCE 75
IMPORTANCE 65
RELEVANCE 70