Analyst Scott Berg of Needham maintained a Buy rating on Paylocity, retaining the price target of $250.00.
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Scott Berg has given his Buy rating due to a combination of factors, including Paylocity’s impressive revenue performance and promising future guidance. The company reported its largest revenue beat since December 2022, indicating strong execution in a stable demand environment. Additionally, Paylocity’s initial FY26 guidance surpassed consensus forecasts, which helps to counter concerns about a potential slowdown in demand.
Paylocity’s annual customer metrics also show a healthy balance, with both customer growth and average revenue per account increasing. The company’s strategic investments in sales and marketing, along with the launch of Paylocity for Finance, are expected to drive further growth. Despite the FY26 recurring revenue growth guidance of 9%, Berg believes that continued strong sales execution and the potential for cross-selling more products could result in double-digit growth for the year.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $225.00 price target.