Updating Automatic Data Processing Inc., Dave & Buster’s Entertainment Inc., and Belmond Ltd.

Article Excerpt

AUTOMATIC DATA PROCESSING INC. $130 (Nasdaq symbol ADP; Manufacturing & Industry sector; Shares outstanding: 440.5 million; Market cap: $57.3 billion; Dividend yield: 2.4%; Takeover Target Rating: Medium; www.adp.com) is one of the world’s largest outsourcing human resources firms. It has over 700,000 clients in 110 countries. The U.S. accounts for 85% of its revenue. In September 2014, ADP spun off CDK Global, its car-dealer software business. Since then, ADP’s stock has gained over 75%. Activist investor Bill Ackman has reduced his stake in ADP from around 2% to 1%. That’s because shareholders rejected his slate of directors at the latest annual meeting. Meantime, the company continues to cut its costs. As a result, its earnings in the fiscal year ending June 30, 2019 will probably rise 21.1% to $5.27 a share from $4.35 in 2018. The stock trades at 24.7 times that forecast. The $3.16 dividend yields 2.4%. ADP is still a buy, but only for aggressive investors. DAVE & BUSTER’S ENTERTAINMENT INC. $45 (Nasdaq symbol PLAY; Consumer sector;…

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