Analyst Daniel Jester of BMO Capital maintained a Buy rating on Dayforce Inc, retaining the price target of $67.00.
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Daniel Jester has given his Buy rating due to a combination of factors influencing Dayforce Inc’s current market position and future prospects. Despite the company’s recent slower growth compared to its peers, there are signs of improvement in bookings and potential opportunities in large and global enterprise markets. This optimism is further supported by the potential for significant margin improvements.
Moreover, the potential acquisition by Thoma Bravo highlights the strategic interest in Dayforce, especially given the historical connections and familiarity within the private equity space. Additionally, Dayforce is transitioning towards more balanced financial objectives, with notable progress in free cash flow margins. The company’s valuation, trading at a discount to peers, presents an attractive opportunity, especially considering its higher quality as an asset and the potential for cost optimization and international expansion.
In another report released today, TR | OpenAI – 4o also upgraded the stock to a Buy with a $74.00 price target.
DAY’s price has also changed slightly for the past six months – from $67.680 to $66.620, which is a -1.57% drop .