In a report released today, Scott Berg from Needham maintained a Buy rating on Dayforce Inc (DAY – Research Report), with a price target of $95.00.
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Scott Berg has given his Buy rating due to a combination of factors that reflect Dayforce Inc’s potential for future growth. Despite a minor shortfall in recurring revenue for Dayforce, the company experienced strong customer growth and exceeded expectations on EPS, indicating robust underlying business performance.
The improvement in sales momentum, driven by normalized refresh cycles, suggests increased demand, although the revenue recognition policy limits immediate financial impact. Berg acknowledges that the market’s negative reaction to the FY25 revenue guidance is influenced by foreign exchange headwinds, but he sees this guidance as conservative. He emphasizes that the company’s solid sales fundamentals point to higher revenue growth in FY26 than previously anticipated, along with an increase in adjusted EBITDA profitability guidance, thus supporting his Buy recommendation.
In another report released on January 30, Citi also maintained a Buy rating on the stock with a $83.00 price target.
Based on the recent corporate insider activity of 61 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DAY in relation to earlier this year.