Oppenheimer Keeps a Hold Rating on Paylocity (PCTY)


Oppenheimer analyst Brian Schwartz maintained a Hold rating on Paylocity (NASDAQ: PCTY) today. The company’s shares opened today at $67.65, close to its 52-week high of $68.14.

Schwartz said:

“Paylocity reported F4Q results with revenue, margins, above consensus. However, the next fiscal year outlook implies that the revenue growth for the business has already peaked in the mid- to high-20% and is now heading toward a sharp slowdown in the low 20% trajectory. The good news is that the business is operating with profitable growth and the EBITDA margin outlook appears solid. Negatively, the expected slowdown coupled with higher profitability could suggest the business and investor expectations may enter a period of transition with a more balanced growth and profit outlook that requires a transition in the investors class. Bottom Line: We maintain our Perform rating on PCTY on valuation, and continue to recommend PAYC over PCTY in the category.”

According to TipRanks.com, Schwartz is a top 25 analyst with an average return of 28.4% and a 78.7% success rate. Schwartz covers the Technology sector, focusing on stocks such as Ultimate Software, Instructure Inc, and Salesforce.com.

Paylocity has an analyst consensus of Moderate Buy, with a price target consensus of $71.50, implying a 5.7% upside from current levels. In a report released today, Craig-Hallum also maintained a Hold rating on the stock with a $65 price target.

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The company has a one-year high of $68.14 and a one-year low of $41.15. Currently, Paylocity has an average volume of 223.7K.

Based on the recent corporate insider activity of 69 insiders, corporate insider sentiment is negative on the stock.

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Paylocity Holding Corp. engages in the development and provision of cloud-based software solution. It offers cloud-based payroll, human capital management applications, time labor tracking, benefits administration, and talent management. The company was founded on November 6, 2013 and is headquartered in Arlington Heights, IL.

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