Paychex(NASDAQ:PAYX) Total HR Services Clients remained roughly flat at about 328,000 between 2019 and 2020. Trefis expects the number to rise to 363,000 in 2021 and 399,000 in 2022. The metric refers to clients for the company’s Insurance, Retirement, and HR outsourcing services.
The metric remained flat in 2020 due to the Covid-19 pandemic and the related economic slowdown. However, improving economic conditions should spur small business growth, benefiting Paychex’s business in the near term.
We think the projected growth is fully priced into Paychex stock. We value PAYX stock at $96 per share, a discount of 15% versus the current market price.
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