Paycor HCM downgraded to Market Perform from Outperform at BMO Capital

BMO Capital analyst Daniel Jester downgraded Paycor HCM (PYCR) to Market Perform from Outperform with a price target of $22.50, down from $24, after Paychex (PAYX) confirmed its intention to acquire Paycor for $22.50 per share, or a 19% premium to the unaffected price. Although the premium was toward the low end of BMO’s expectation, upon further reflection the implied revenue multiple seems near recent comparable transactions, the analyst tells investors in a research note. The firm points out Paycor’s largest shareholder is supportive of the deal.