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 that highlight Paylocity’s strong performance and future potential. The company reported impressive first-quarter results, with revenue and adjusted EBITDA exceeding expectations, indicating robust execution in a stable demand environment. Despite no significant macroeconomic impacts, Paylocity remains focused on medium-term growth through the expansion of its modules, particularly with the introduction of a new Finance module and an IT asset management solution.
Paylocity’s consistent execution of its Average Revenue Per User (ARPU) growth strategy over the past 11 years has bolstered confidence in its ability to maintain double-digit recurring revenue growth through fiscal year 2027. Additionally, the company has raised its guidance while keeping a conservative outlook, and updated its long-term targets to reflect enhanced profitability at scale. These factors collectively support the Buy rating, as they demonstrate Paylocity’s strong market position and growth trajectory.
Based on the recent corporate insider activity of 157 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PCTY in relation to earlier this year.