Business outsourcing solutions provider Automatic Data Processing (ADP) on Friday caught some tepid commentary from analysts at Barclays Capital.

The firm maintained its “Overweight” rating on ADP but lowered its price target from $60 to $58. That new target suggests a 9% upside to the stock’s Thursday closing price of $53.15.

A Barclays analyst commented, “ADP’s annual investor day yesterday had a mix of positive and negative takeaways, but the story remains largely unchanged: ADP is doing a strong job with its product portfolio and has solid momentum, but low interest rates will continue to constrain growth for at least one (and likely two) more years.”

Still, the firm lowered its 2013 EPS estimate for ADP from $3.00 to $2.92, and its 2014 estimate from $3.32 to $3.18.

Automatic Data Processing shares posted small losses in afternoon trading Friday.

The Bottom Line
Shares of Automatic Data Processing (ADP) have a 2.97% dividend yield, based on last night’s closing stock price of $53.15. The stock has technical support in the $48-$50 price area. If the shares can firm up, we see overhead resistance around the $56-$57 price levels.

Automatic Data Processing (ADP) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.