In a report released today, Scott Berg from Needham maintained a Buy rating on Dayforce Inc, with a price target of $95.00.
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Scott Berg has given his Buy rating due to a combination of factors indicating strong potential for Dayforce Inc. The company reported impressive revenue and earnings per share (EPS) for the quarter, surpassing expectations. The updated guidance suggests a significant acceleration in recurring revenue growth, projected at approximately 17.5%, which indicates that recent sales performance has been robust, bolstered by strong partner and add-on contributions.
Furthermore, while the forecast for free cash flow (FCF) was raised, this was primarily due to anticipated tax law changes. An additional positive factor is the early success in AI monetization, with 50% of new customers adopting at least one AI-based module. This suggests that Dayforce Inc. has the potential to capitalize on AI opportunities more effectively than many of its peers in the Human Capital Management (HCM) sector.
In another report released today, KeyBanc also reiterated a Buy rating on the stock with a $65.00 price target.