Forecast Of The Day: ADP’s Worksite Employees
What?
ADP (NASDAQ:ADP) Worksite Employees for its HR Outsourcing services have grown from around 547,000 in 2019 to about 571,000 in 2020. Trefis expects the metric to rise to around 620,000 in 2021 and to 663,000 in 2022.
Why?
Complexities in the Affordable Care Act are forcing businesses to take advice from professionals. Moreover, ADP also has a stronger customer retention rate versus its peers, which should support its longer-term growth.
So What?
Despite the positive growth outlook, we think ADP stock is slightly overvalued at current levels. We value ADP at $200 per share, about 15% below the current market price.
See Our Complete Analysis For ADP
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