Dayforce price target lowered to $83 from $90 at BMO Capital

BMO Capital lowered the firm’s price target on Dayforce (DAY) to $83 from $90 and keeps an Outperform rating on the shares. Following the company’s Q4 results, investors are left to balance the enthusiasm around a meaningfully stronger bookings environment against a near-term recurring revenue outlook which seemingly implies modest additional deceleration off of a weaker-than-expected Q4, the analyst tells investors in a research note. BMO adds that it still leans positive, reflecting continued share gains in the lower enterprise market, positive feedback on new HCM innovations, and upward tension to free cash flow margins, but also sees catalysts for Dayforce as “back-end loaded this year”.