ADP Earnings: Payroll Powerhouse on Track for Sound Fiscal 2024 Buoyed by Resilient Retention

We maintain our $240 fair value estimate for wide-moat ADP following the release of healthy fiscal third-quarter results that broadly track our full-year expectations. ADP continues to enjoy the benefits of a sticky customer base and platform investments, posting record employer services client retention and client satisfaction during the quarter. Following the results, we have made some minor tweaks to our near-term segment-level forecasts to adjust for updated guidance, but these are immaterial to our valuation. ADP shares currently screen as fairly valued.