Paylocity, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Jared Levine from TD Cowen maintained a Buy rating on the stock and has a $184.00 price target.
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Jared Levine has given his Buy rating due to a combination of factors that suggest Paylocity’s stock is poised for future growth. He anticipates that investor sentiment will improve as concerns over organic growth and capital returns stabilize, which have been areas of underperformance in the past year. Levine notes that shares have been affected by broader market aversions and specific challenges within the human capital management sector, but he expects these issues to subside.
Moreover, Levine highlights the potential of Airbase up-sells as a significant growth driver that is currently underappreciated by the market. He projects that these up-sells could significantly contribute to Paylocity’s recurring fees over the next few years, helping to stabilize growth rates. The anticipated increase in recurring fees, supported by a reasonable penetration rate of Airbase, forms a key part of his positive outlook for the stock.
In another report released on November 13, Truist Financial also reiterated a Buy rating on the stock with a $240.00 price target.
Based on the recent corporate insider activity of 125 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.