Guggenheim Raises ADP Price Target to $340
Key Points
- Guggenheim maintained a Buy rating on Automatic Data Processing, Inc. on October 23, 2026, while raising its price target to $340.00 from $300.00.
- Guggenheim's $340 price target implies 10.41% upside from Automatic Data Processing, Inc.'s ($ADP) current $307.94 share price.
- ADP closed at $305.08 on October 23, 2026, trading near its 52-week high of $308.63.
- The stock is covered by 15 analysts who currently carry a consensus hold recommendation and a mean price target of $289.07.
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Guggenheim reiterated its Buy rating on Automatic Data Processing, Inc. (NasdaqGS: ADP) on October 23, 2026, while lifting its price target from $300.00 to $340.00. According to the research note, the firm continues to favor the human resources software provider as shares trade near peak levels.
ADP
Automatic Data Processing, Inc.
Guggenheim vs. the S&P 500
Hypothetical returns from Guggenheim's disclosed trades, not real profit or advice. How we model this.
Guggenheim's Call on Automatic Data Processing
Guggenheim's updated research note on October 23, 2026, maintained a Buy rating on the company while bumping the price target up to $340.00 from $300.00. This follows a string of earlier updates from other Wall Street firms. On July 30, 2026, Citigroup maintained a Neutral rating with a target moved from $230.00 to $287.00, and Morgan Stanley maintained an Equal-Weight rating with a target moved from $240.00 to $286.00. Later, on August 3, 2026, Cantor Fitzgerald maintained an Overweight rating with a target shifted from $295.00 to $310.00, followed by a reiteration of the Overweight rating at $310.00 on August 5, 2026.
Automatic Data Processing, Inc. Stock Up 4.6%
Shares of Automatic Data Processing closed at $305.08 on October 23, 2026, and recently traded around $307.94. That puts the stock just below its 52-week high of $308.63, and far above its 52-week low of $188.16. The recent price sits well above its 50-day moving average of $274.80 and its 200-day moving average of $239.41.
$ADP price target
Automatic Data Processing, Inc. daily closes and this analyst's $340 target. Not advice.
Recent Earnings
In its trailing twelve months, Automatic Data Processing generated $21.95 billion in revenue and reported basic earnings of $10.94 per share. The company posted a net profit margin of 20.1% alongside a return on equity of 72.2% and a revenue growth rate of 6.8% year over year. Investors are looking ahead to the company's next earnings report scheduled for release on October 28, 2026.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
3 target cuts vs 1 raises.
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EPS & revenue
EPS beat estimates by 1.7%. Revenue beat estimates by 0.5%.
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Profit surprise
EBITDA met by 1 percent. Operating income met by 1 percent.
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Pre-earnings setup
Expectations were about average.
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Analyst signal
1 target raise, 3 target cuts.
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Earnings quality
Gross margin down 3.4 points. Operating margin up 0.7 points. Positive free cash flow.
Earnings Call Summary
ADP delivered solid first quarter results with 7 percent revenue growth and 7 percent adjusted earnings per share growth. Employer services bookings accelerated, with strong momentum in ADP Lyric HCM and Workforce Now Next-Gen capturing 80 percent of new mid-market sales. Pays per control rounded to zero percent as clients remained cautious about hiring. PEO revenue grew 7 percent, beating expectations, while the company made strategic progress with the Pequity compensation management acquisition and continued expansion of embedded payroll partnerships with Fiserv.
Guidance ADP reaffirmed its full year revenue growth of 5 to 6 percent and adjusted earnings per share growth of 8 to 10 percent. The company expects employer services revenue to grow 5 to 6 percent for the year, with flat pays per control. PEO revenue is expected to grow 5 to 7 percent, with worksite employee growth of 2 to 3 percent. Client funds interest revenue was raised by 10 million dollars to 1.30 to 1.32 billion dollars.
Clearly negative report. The company missed important expectations and likely triggers downward revisions.
Dividend
Automatic Data Processing pays an annual dividend rate of $6.80 per share, which translates to a dividend yield of 2.21%. The company doles out 60.7% of its earnings as dividends to shareholders.
Insider Buying and Selling at Automatic Data Processing, Inc.
Recent insider activity includes several transactions recorded prior to the rating update. On September 2, 2026, Chief Executive Officer Maria Black sold 29,810 shares valued at about $8.37 million. On the same day, officer Christopher D'Ambrosio sold 1,872 shares at $283.00 each for a total of $529,776, and officer David Foskett sold 1,529 shares at $283.00 each worth $432,707. Shortly after, on September 3, 2026, officer Joseph Desilva sold 631 shares at $282.87 each for a total of $178,491.
Analysts Set New Price Targets
Across 15 analyst opinions, the stock currently carries a consensus hold recommendation and a mean price target of $289.07, with target estimates ranging from a low of $225.00 to a high of $340.00.
About Automatic Data Processing
Automatic Data Processing, Inc. builds cloud-based human capital management software and provides human resources outsourcing solutions for businesses around the globe. The company operates through two main segments, Employer Services and Professional Employer Organization solutions, helping organizations handle payroll, benefits, and workforce management.
Bottom Line
Guggenheim's higher price target highlights continued confidence in the software provider as it approaches its upcoming earnings release on October 28, 2026. Market watchers will be tracking how the company's financial results match up against Wall Street's expectations.
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Source: Guggenheim's rating change on $ADP (Oct 23, 2026). Written by software, not financial advice. How we make alerts