Stable Outlook for Paycom Amid Strong Performance and Growth Challenges

William Blair analyst Jake Roberge has maintained their neutral stance on PAYC stock, giving a Hold rating today.

Jake Roberge has given his Hold rating due to a combination of factors including Paycom’s solid first-quarter performance, which exceeded expectations in key areas like new unit sales and EBITDA margin expansion. The company’s strong sales execution and efficient operational spending, aided by AI automation, contributed to these results.
Despite the positive performance, there are challenges such as difficult comparisons impacting growth in the first quarter of 2025. However, management is optimistic about accelerating recurring revenue growth for the rest of the year, driven by improved customer satisfaction and expansion opportunities. The new offices in Raleigh, Providence, and Los Angeles are expected to contribute more significantly in 2026, indicating a longer-term growth trajectory. These factors combined suggest a stable outlook, justifying the Hold rating.

In another report released today, TD Cowen also maintained a Hold rating on the stock with a $241.00 price target.