Automatic Data Processing Unlikely to See Valuation Lift Despite AWS Deal, UBS Says

12:54 PM EDT, 09/09/2026 (MT Newswires) -- Automatic Data Processing (ADP) is unlikely to see a meaningful valuation boost from its expanded cloud partnership with Amazon.com's (AMZN) Amazon Web Services, as macro and industry concerns continue to weigh on the human-resources software sector, UBS Securities said Tuesday in a report. ADP and AWS broadened their collaboration to move more of ADP's core payroll and tax systems onto AWS, including upgrades to its AI-driven tools and data platform. UBS said the initiative is strategically useful, though not enough to shift investor sentiment. Labor-market indicators point to low churn, with muted hiring and separations, UBS said. The firm continues to prefer Paycom Software (PAYC) on product-driven share gains and stronger capital return. UBS rates ADP stock neutral with a $290 price target. ADP shares fell 0.9% in Wednesday trading, Amazon dropped 2.1%, and Paycom declined 1.1%. Price: 265.66, Change: -2.31, Percent Change: -0.86