BMO Capital analyst Daniel Jester maintained a Buy rating on Dayforce Inc (DAY – Research Report) today and set a price target of $67.00.
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Daniel Jester has given his Buy rating due to a combination of factors that highlight Dayforce Inc’s potential for growth and financial improvement. The company is experiencing a favorable bookings environment, which is expected to enhance growth momentum through FY25. Key strengths include an increase in platform deals, growth in managed services, and the Wallet feature. These elements are anticipated to contribute positively to the company’s performance.
Furthermore, Dayforce has made significant strides in expanding its platform suite beyond core offerings, such as payroll and time and attendance, to include a comprehensive HR suite. This expansion has led to a high percentage of new deals being full suite sales, particularly in the mid-market and enterprise sectors. Additionally, the company is focused on margin expansion, with expectations of a 250 basis point increase in FCF margin this year. Despite some current headwinds, these are expected to diminish, paving the way for financial model improvements into CY26. Overall, Dayforce’s solid growth profile and international opportunities make its shares attractive in the long term.
According to TipRanks, Jester is a 4-star analyst with an average return of 7.3% and a 55.93% success rate. Jester covers the Technology sector, focusing on stocks such as Procore Technologies, Autodesk, and Intuit.