Automatic Data Processing "outperform"

12/07/05 - Robert W. Baird

NEW YORK, December 7 (newratings.com) - Analysts at Robert W Baird reiterate their "outperform" rating on Automatic Data Processing (ADP). The target price is set to $53.

In a research note published this morning, the analysts mention that the company has acquired Kerridge Computer Company for approximately $300 million in cash. The acquisition would expand the geographic coverage of Automatic Data Processing’s Dealer Services segment to 41 countries and four continents from the existing 14 countries and two continents, the analysts say. The deal is expected to be neutral to the company’s FY06 EPS and accretive to FY07 EPS by approximately $0.01, Robert W Baird adds.