ADP falls after Jefferies downgrades rating to 'underperform'

Shares of payroll processor Automatic Data Processing ADP.O fall 1.4% to $261.30 premarket

Jefferies downgrades stock to "underperform" from "hold"; cuts PT to $230 from $245, a 14.1% downside to stock's last close

"The fundamental outlook appears shaky" - Jefferies

Brokerage adds that market saturation, larger competitors and falling interest rates have already pressured ADP's growth in 2025

Three of 17 brokerages rate the stock "buy" or higher, 11 "hold" and three "sell" or lower; their median PT is $295 - data compiled by LSEG

As of last close, stock down 9.5% YTD