Paylocity initiated with an Overweight at Cantor Fitzgerald

Cantor Fitzgerald initiated coverage of Paylocity (PCTY) with an Overweight rating and $215 price target as part of a broader research note launching coverage on select Human Capital Management – HCM – names. Covid drove a sharp acceleration across the industry, but since 2022, HCM battled a “hangover”, with estimates being repeatedly lowered, the analyst tells investors in a research note. Cantor notes however that it sees the industry having settled into a “new normal” as estimates reset to reasonable levels and with valuation multiples “undemanding”. The firm contends that while the “hangover” could last until 2027, the firm sees a “reasonable” risk-reward.