ADP Stock Rebounds 2.71% Despite Morgan Stanley's Lowered Target

Morgan Stanley Maintains Confidence Despite Revised Target

ADP gained 2.71% to €106.30 at the opening, up from €103.50 the previous day. On Monday, May 4, Morgan Stanley reduced its price target from €134 to €130, while reaffirming its overweight rating. The new target represents a gap of about 22% from the current price. The broker thus maintains a constructive view on the stock, after the late April downturn that saw the stock fall below €100 following a 0.9% decline in Q1 revenue. The rebound is part of an overall bullish session in Paris, with the CAC 40 up 1.44%. On March 13, during the release of the 2025 accounts, the group announced a guidance for current EBITDA above €2,350 million for 2026, with traffic expected to grow between 1.5% and 2.5%. Investments of €1,450 million and a dividend policy set at 60% of net income (with a minimum of €3.00 per share) complete the financial framework.

The Stock Recovers Part of Its Post-Q1 Slump

At €106.30, ADP's stock remains below its reference moving averages: the MM50 is at €109.36 and the MM200 at €114.36. The day's rebound is not enough to reach these thresholds. The RSI at 39 is gradually moving out of the low zone reached at the end of April, without yet signaling a trend reversal. Over three months, the stock has lost 7%, and 6.59% over a year. The technical support identified at €100.80 held last week after the stock dipped below €100 intraday. The next event on the calendar is the 2026 general assembly, scheduled for Thursday, May 21, 2026.