Paylocity (PCTY – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Daniel Jester from BMO Capital maintained a Buy rating on the stock and has a $250.00 price target.
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Daniel Jester has given his Buy rating due to a combination of factors that paint an optimistic picture for Paylocity’s future performance. Firstly, the company’s recent financial results exceeded expectations, showcasing stabilized growth in its core business and an improved momentum in bookings. This is further supported by promising opportunities in the broker channel and the company’s ongoing impressive pace of innovation. The potential to leverage Airbase to expand customer spending represents a significant opportunity for long-term growth.
Moreover, Paylocity’s revenue growth was notably strong, with total revenue surpassing the midpoint of guidance, primarily driven by the core business. Despite a slight dip in EBITDA margins due to integration challenges with Airbase, the company’s free cash flow margin projections align with expectations, showing potential for incremental gains. Additionally, guidance for future growth has been revised upward, indicating confidence in continued revenue and margin improvements. These elements combined lead to an increased price target and a Buy rating from Jester.
In another report released today, JMP Securities also maintained a Buy rating on the stock with a $270.00 price target.
PCTY’s price has also changed moderately for the past six months – from $152.090 to $212.010, which is a 39.40% increase.