Analyst Brad Reback of Stifel Nicolaus maintained a Buy rating on Paylocity (PCTY – Research Report), retaining the price target of $235.00.
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Brad Reback has given his Buy rating due to a combination of factors including Paylocity’s strategic approach to managing expectations amidst macroeconomic uncertainties. Despite a slight reduction in the forecast for FY26 subscription revenue growth from approximately 10% to 8.7%, Reback sees the company’s conservative guidance as a positive move that could lead to upside potential.
Additionally, while there is a projected decline in float income due to anticipated lower rates, the impact on profitability is expected to be minimal. The core margins are predicted to increase slightly, and the overall conservative start to the fiscal year is likely to be well-received by investors, reinforcing the Buy rating.