Needham analyst Joshua Reilly has maintained their neutral stance on PAYC stock, giving a Hold rating yesterday.
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Joshua Reilly has given his Hold rating due to a combination of factors including Paycom’s recent financial performance and future outlook. The company’s third-quarter results showed a solid performance with recurring revenue growth, which was in line with expectations. However, the lack of quarterly guidance from Paycom adds a layer of uncertainty, even though there are positive indicators for future growth.
Additionally, while there are signs of fewer customer exits, which could support growth retention rates, the overall impact on the company’s long-term growth remains to be seen. Paycom’s strategic shift towards more automation in its product offerings is promising, but its full effect on growth will take time to materialize. These factors combined suggest a balanced outlook, justifying a Hold rating at this time.
Reilly covers the Technology sector, focusing on stocks such as Jamf Holding, Digimarc, and Tyler Technologies. According to TipRanks, Reilly has an average return of 2.2% and a 44.49% success rate on recommended stocks.
In another report released yesterday, Jefferies also maintained a Hold rating on the stock with a $190.00 price target.