NEW YORK (TheStreet) -- Shares of Paychex, Inc. (PAYX) are dropping -3.13% to $40.89 after Credit Suisse (CS) said the company's fiscal 2015 outlook shows improvement in service revenue growth, but fairly muted net income growth of 6% to 8% versus fiscal 2014's 10% growth.
Paychex reported fourth quarter 2014 earnings of 40 cents per share on revenue of $617.2 million at the close on Tuesday, which was in line with expectations of analysts surveyed by FactSet.
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Separately, TheStreet Ratings team rates PAYCHEX INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate PAYCHEX INC (PAYX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."