Analysts at Wedbush raised their price target on Paychex, Inc. (NASDAQ:PAYX) to $125 from $105 following strong Q1 results, which drove the share price more than 4% higher on Thursday.

The company delivered strong Q1 results and better-than-expected full 2022-year guidance, reflecting normalized new SMB formation levels, tracking above pre-pandemic levels.

Quarterly revenue came in at $1.08 billion, better than the Street estimate of $1.04 billion, and EPS came in at $0.89, compared to the Street estimates of $0.80.

The company’s management highlighted strong results driven by favorable compares, an improved economic environment, and good execution. Margins benefited from pandemic related expense adjustments, including delayed hiring and increased efficiencies from technology investments.