In a report released yesterday, Jared Levine from TD Cowen maintained a Buy rating on Paylocity (PCTY – Research Report), with a price target of $242.00.
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Jared Levine has given his Buy rating due to a combination of factors that highlight Paylocity’s strong financial performance and growth potential. The company has demonstrated a solid quarter with an impressive beat and raise on expectations, driven by organic growth and new client engagements exceeding forecasts. This performance suggests Paylocity’s shares are likely to outperform its peers as it benefits from higher estimates and investor confidence in its growth strategy.
Moreover, Levine notes the prudent guidance updates for FY25, which reflect the company’s strategic positioning and potential for future growth. The expansion in attach rates and product offerings, along with the successful integration of Airbase, indicate promising prospects for increased revenue opportunities. As a result, Levine has raised the price target to $242, supported by a strong combination of ex-float growth and free cash flow margins, reinforcing the Buy rating.
In another report released on January 31, Mizuho Securities also upgraded the stock to a Buy with a $235.00 price target.