Mizuho Securities analyst Siti Panigrahi has reiterated their bullish stance on DAY stock, giving a Buy rating yesterday.
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Siti Panigrahi has given his Buy rating due to a combination of factors related to Dayforce Inc’s recent performance and future outlook. Despite a mixed fourth quarter influenced by temporary setbacks such as foreign exchange issues and unexpected employee volumes, the company has shown strong sales momentum. Importantly, Dayforce has reaffirmed its revenue guidance and increased its EBITDA margin target for FY25, indicating management’s confidence in achieving sustainable growth and efficiency.
Panigrahi notes that the current dip in share price, driven by concerns over missed recurring revenue targets, presents an attractive opportunity for investors. Furthermore, the company’s robust pipeline of enterprise deals and improved cost structure are expected to drive medium-term growth. Considering these factors, Dayforce is seen as well-positioned within its industry, justifying a premium valuation compared to its peers, with a price target maintained at $95.
In another report released yesterday, Piper Sandler also maintained a Buy rating on the stock with a $83.00 price target.
Based on the recent corporate insider activity of 68 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.