Paylocity (PCTY – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Scott Berg from Needham maintained a Buy rating on the stock and has a $250.00 price target.
Scott Berg has given his Buy rating due to a combination of factors including Paylocity’s strong financial performance and strategic positioning. The company reported impressive results for the fiscal third quarter, surpassing expectations in both revenue and earnings. This performance was driven by stable demand and effective sales execution, even amidst market uncertainties.
Additionally, Paylocity is projected to sustain a recurring revenue growth rate of 10%-15% through fiscal year 2026, supported by new deals and increased adoption of its modules. The integration of Airbase is expected to enhance the company’s offerings, particularly by providing a differentiated employee experience, which is anticipated to appeal to midmarket clients. These elements collectively underpin Berg’s optimistic outlook on Paylocity’s stock.