TD Cowen analyst Jared Levine has maintained their bullish stance on DAY stock, giving a Buy rating on August 1.
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Jared Levine’s rating is based on a combination of factors that suggest a positive outlook for Dayforce Inc. Despite the expectation that the stock may remain stable in the short term, Levine sees potential for long-term investors due to the company’s attractive valuation. The stock is trading at approximately 21 times its estimated enterprise value to free cash flow for 2027, which is appealing given Dayforce’s strong free cash flow growth trajectory.
Levine also notes that Dayforce is effectively expanding its free cash flow margin, which has increased significantly year-over-year. The company has raised its free cash flow margin guidance due to anticipated tax benefits, which further strengthens its financial position. While there are some concerns about growth estimates and guidance, the overall financial health and growth potential of Dayforce justify the Buy rating.
Levine covers the Technology sector, focusing on stocks such as Dayforce Inc, Paycom, and Paylocity. According to TipRanks, Levine has an average return of -5.0% and a 27.27% success rate on recommended stocks.
In another report released on August 1, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $64.00 price target.