Paylocity price target lowered to $220 from $250 at KeyBanc

KeyBanc lowered the firm’s price target on Paylocity (PCTY) to $220 from $250 to reflect the recent pullback in software valuation, while keeping an Overweight rating on the shares. The firm believes investors head into on-quarter payroll SaaS earnings generally cautious. While KeyBanc’s checks did indicate increased deal scrutiny as of late among mid-market partners, the firm derives some comfort from its first half of the year KBCM SMB survey and other recent employment economic data suggesting modest workforce growth expectations.