In a report released today, Jared Levine from TD Cowen maintained a Hold rating on Paycom, with a price target of $254.00.
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Jared Levine has given his Hold rating due to a combination of factors, including adjustments in revenue estimates and expectations surrounding future federal funds rate changes. While there have been minor reductions in certain revenue areas, these are balanced by improvements in float revenue, leading to an overall positive shift in the revenue mix.
Additionally, Levine has increased estimates for adjusted EBITDA, free cash flow, and earnings per share, attributing these changes to better expense leverage and a favorable shift towards float revenue. Despite these positive adjustments, the price target remains at $254, based on a valuation of 29 times the expected enterprise value to free cash flow for the year 2026. This balanced outlook supports the decision to maintain a Hold rating for Paycom’s stock.
Based on the recent corporate insider activity of 149 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PAYC in relation to earlier this year.