William Blair analyst Jake Roberge has maintained their neutral stance on PAYC stock, giving a Hold rating on July 29.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Jake Roberge’s rating is based on Paycom’s strong performance in the second quarter, where the company exceeded expectations in key areas such as recurring revenue growth, which accelerated to 12% from the previous quarter’s 7%. This growth was supported by the company’s success in acquiring new clients, marking another record for their go-to-market team. Additionally, Paycom introduced its new IWant solution, which is anticipated to bolster growth by attracting more clients, enhancing customer retention, and increasing the adoption of new product modules.
Despite these positive developments, Jake Roberge maintains a Hold rating due to the company’s strategic decision not to charge a direct subscription fee for the IWant solution, which may impact immediate revenue generation. Furthermore, while the new office locations in Raleigh, Providence, and Los Angeles are performing well, the significant financial benefits from these expansions are expected to materialize more substantially in 2026 and beyond. Therefore, while Paycom shows promising signs of growth and stability, the full financial impact of these initiatives is yet to be realized.
In another report released on July 29, Citi also maintained a Hold rating on the stock with a $237.00 price target.