William Blair analyst Jake Roberge has maintained their neutral stance on DAY stock, giving a Hold rating yesterday.
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Jake Roberge has given his Hold rating due to a combination of factors surrounding Dayforce Inc’s potential acquisition by Thoma Bravo. The company is in advanced discussions to be taken private at $70 per share, which is a significant premium over its recent trading prices. Despite the premium, the current trading price is slightly below the proposed acquisition price, and Roberge believes that a higher bid is unlikely, prompting a Hold rating.
Additionally, the valuation of Dayforce at the proposed price is seen as reasonable when compared to similar transactions in the Human Capital Management (HCM) sector. The premium is justified by Dayforce’s faster recurring revenue growth and larger scale compared to its peers. However, the ongoing discussions and the company’s current market position suggest that maintaining a Hold rating is prudent until more definitive information is available.
According to TipRanks, Roberge is an analyst with an average return of -6.2% and a 33.94% success rate. Roberge covers the Technology sector, focusing on stocks such as BlackLine, DocuSign, and Jamf Holding.
In another report released yesterday, Barclays also maintained a Hold rating on the stock with a $61.00 price target.