Buy Rating on Dayforce Inc: Underperformance and FCF Margin Expansion Present Compelling Entry Point

TD Cowen analyst Jared Levine upgraded the rating on Dayforce Inc (DAY – Research Report) to a Buy today, setting a price target of $68.00.

Jared Levine has given his Buy rating due to a combination of factors, primarily the recent underperformance of Dayforce Inc’s shares and the underappreciated potential for free cash flow (FCF) margin expansion. Levine sees the current valuation as a compelling entry point, especially given the stock’s potential to outperform as investors become more comfortable with perceived risks, such as tariffs and opportunities with the Canadian government.
Levine believes that Dayforce Inc is well-positioned to exceed medium-term FCF expectations and deliver growth within its human capital management (HCM) competitive set. The analyst also notes that the company’s valuation metrics have become more attractive, with a notable improvement in sales efficiency contributing to better financial projections. Consequently, Levine has raised the price target to $68, reflecting confidence in the stock’s ability to surpass consensus expectations and deliver strong performance relative to its peers.

According to TipRanks, Levine is a 2-star analyst with an average return of -0.9% and a 47.83% success rate. Levine covers the Technology sector, focusing on stocks such as Paycom, Paylocity, and Dayforce Inc.