In a report released today, Brian Schwartz from Oppenheimer maintained a Hold rating on Paylocity (PCTY). The company’s shares opened today at $97, close to its 52-week high of $99.80.
Schwartz commented:
“Paylocity reported strong F3Q results ahead of consensus and with the largest magnitude revenue beat vs. the high end of guidance since F2Q 2016. The strong results, improved FY2019 guidance, and good newer product and emerging (downmarket) segment management commentary are enough to support valuation, in our opinion. Negatively, the outlook implies a F4Q growth deceleration, and it appears that recurring revenue growth has peaked and is heading towards a low-to-mid 20% growth trajectory, which is in line with the SaaS group average but below PAYC’s and ULTI’s growth rates at PCTY’s current size. At current prices, we project a balanced risk/reward profile. Maintain Perform.”
According to TipRanks.com, Schwartz is a top 25 analyst with an average return of 29.1% and a 78.2% success rate. Schwartz covers the Technology sector, focusing on stocks such as Instructure Inc, Salesforce.com, and Trade Desk Inc.
Currently, the analyst consensus on Paylocity is a Moderate Buy with an average price target of $102, implying a 5.2% upside from current levels. In a report released today, Jefferies also maintained a Hold rating on the stock with a $103 price target.
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Based on Paylocity’s latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $5.7 million. In comparison, last year the company had a net profit of $39.18 million.
Based on the recent corporate insider activity of 59 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.
