4.7 %

3.3%

Sector Perform - Price 33.17 on June 10
by RBC Capital Markets

We're reducing our growth rates for Paychex due to negative impact of rising unemployment [and] weak U.S. economy['s effect] on small business. Increased customer bankruptcies, declining checks per client and slower new-business [pace may] reduce core payroll growth to below its 8% target. Three-year estimated EPS growth: 7.38%. Target 34 assumes 21 times our forward E-EPS, $1.63 (was $1.61). Market cap: $11.9 billion.

Good technology

value & dividends

good track record

Dividend paying stock

Dividend paying stock

Investors' worries have created a buying opportunity in Paychex stock. It should return to at least 46 -- about 12% above its current price -- within a year.

#70

2X Growth = Nooooooooo!