** Brokerage Morgan Stanley cuts PT for payroll service provider Paychex PAYX.O to $123 from $133
** Brokerage cites softer revenue per employee trends as evidence of small and mid-sized businesses' (SMBs) desire to manage cost
** Morgan Stanley highlights the underwhelming top-line performance of Paycor, acquired by PAYX, as a key reason why the stock remains challenging to own in the near term
** We believe investors have yet to see evidence that Paycor will be able to deliver sustainable double-digit growth, especially with the softer revenue per client trend - Morgan Stanley
** 1 of 16 brokerages covering the stock recommends "strong buy", 13 recommend "hold", and 2 recommend "sell" or lower; stock has a median pt of $122 - LSEG-compiled data
** Up to last close, PAYX has fallen ~20% YTD
(Reporting by Arnav Mishra in Bengaluru)
((Arnav.Mishra@thomsonreuters.com;))
Comments