Paychex (NASDAQ:PAYX) Core Business Gradually Improving

Citing potentially stronger employment and sentiment from small business, UBS sees the core business of Paychex (NASDAQ:PAYX) improving.

UBS says, "Recent macro data points regarding employment and small-business sentiment have been reflecting gradual improvement in PAYX's core business, we believe. As a result, we are raising our price target to $32.

"We still see longer-term growth challenges - We maintain our view that PAYX (and ADP (NYSE: ADP)) will be challenged to re-attain pre-recession top-line growth rates, largely because of a lack of secular tailwind in the payroll outsourcing market. We also don't expect much help from the interest rate environment any time soon."

UBS reiterates a "Neutral" rating on Paychex (PAYX), which was trading at $32.72, gaining $0.29, or 0.89 percent, as of 2:54 PM EST. UBS boosted their price target on Payches (PAYX) from $28 to $32.