William Blair analyst Jake Roberge has maintained their bullish stance on PCTY stock, giving a Buy rating yesterday.
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Jake Roberge has given his Buy rating due to a combination of factors that underscore Paylocity’s solid operating momentum and defensible market position. The company delivered second-quarter results that exceeded consensus on all major metrics, with recurring revenue growing meaningfully faster than what the market had anticipated, supported by a generally steady demand backdrop. Management also reported a robust year-end selling season, driven by effective sales execution and sustained strength in the broker channel, while newer offerings like Paylocity for Finance are gaining traction and helping differentiate the platform with prospective clients.
Roberge also highlights Paylocity’s growing adoption of AI tools, evidenced by a sharp sequential increase in usage of its AI Assistant, as an indication of product relevance and customer engagement. In response to investor concerns about AI-native competitors, the company articulated several structural advantages, including its role as the core HR system of record with privileged data access, a high-touch service model well suited to mid-sized clients that require implementation support, and the mission-critical, highly regulated nature of payroll workflows that demand precision, integration, and trust. In his view, these elements collectively form durable competitive moats, supporting the long-term growth and profitability outlook that underpins the Buy recommendation.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $178.00 price target.