Automatic Data Processing upgraded to "buy" - update

08/09/07 - A.G. Edwards & Sons

NEW YORK, August 9 (newratings.com) - Analyst Timothy W Willi of AG Edwards upgrades Automatic Data Processing (ADP) to "buy," while raising his estimates for the company. The price objective is set to $55.

In a research note published this morning, the analyst mentions that the company has reported robust F4Q07 EPS, and the momentum in its performance is more sustainable than anticipated earlier. The analyst expects Automatic Data Processing to generate EPS growth in the mid-teens range over the upcoming five years, aided by excess capital deployment, margin progression, productivity gains and organic growth. The EPS estimate for 2008 has been raised from $2.19 to $2.21.