In a report released today, Bryan Bergin from TD Cowen assigned a Buy rating on Paycom, with a price target of $148.00.
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Bryan Bergin has given his Buy rating due to a combination of factors tied to Paycom’s updated financial outlook and valuation. He modestly increased revenue projections after incorporating higher forward federal funds rate assumptions, which in turn boosted his expectations for adjusted EBITDA as stronger top-line performance flows through to profitability.
He also raised his adjusted EPS forecasts, mainly because he now anticipates a lower share count following recent repurchase activity, partly offset by higher net interest costs. Based on these revised cash flow and earnings assumptions, he set a price target of $148, applying a 14x multiple to his 2027 estimated enterprise value to free cash flow, which he views as attractive relative to the company’s growth and cash generation profile.