Paychex shares could hit $50: Barron's
NEW YORK (Reuters) - Shares of payroll services company Paychex Inc (PAYX.O) could reach $50 within 18 months as growth continues, according to a Barron's report.
Paychex shares fell in September after it said net income in fiscal 2008 would rise 12 to 14 percent, below Wall Street analysts' estimates of about 15 percent.
Barron's said in the October 8 edition that Paychex's fiscal 2008 profit projections had little to do with the economy and were largely as a result of its anticipated stock buyback and the U.S. central bank's decision to cut interest rates, which trims Paychex's pre-tax income.
"Beyond the current fiscal year ... there is no reason to believe that growth will slow," Barron's said.
Barron's, which also expected the stock to recover to $46 within a year, called Paychex's stock a "classic buying opportunity".
Paychex shares closed on Friday up 87 cents, or 2.11 percent, at $42.02 on the New York Stock Exchange.
(Reporting by Kenneth Li)
