BMO Capital analyst Daniel Jester maintained a Hold rating on Dayforce Inc yesterday and set a price target of $70.00.
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Daniel Jester’s rating is based on a combination of factors including the recent performance and anticipated future developments for Dayforce Inc. The company’s latest quarterly results showed a slight shortfall in key revenue areas, with growth at approximately 14%, which was below expectations due to declining employment levels among its customer base. This trend mirrors broader employment challenges seen in the industry, as indicated by similar patterns at ADP.
Despite these challenges, Dayforce’s total revenue growth was largely in line with projections, and the company managed to slightly exceed EBITDA expectations. However, the upside was limited compared to the trailing twelve-month average. Given these mixed results and the upcoming acquisition by Thoma Bravo, which is expected to close by early 2026, Jester maintains a cautious outlook. The Hold rating reflects the unchanged growth and margin assumptions for the coming quarters, with risks skewed towards the downside due to ongoing labor market uncertainties.
Jester covers the Technology sector, focusing on stocks such as Workday, Workiva, and Dayforce Inc. According to TipRanks, Jester has an average return of 5.8% and a 54.55% success rate on recommended stocks.