William Blair analyst Jake Roberge has maintained their neutral stance on PAYC stock, giving a Hold rating on January 31.
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Jake Roberge has given his Hold rating due to a combination of factors including Paycom’s mixed outlook for future growth. While the company reported solid results in the fourth quarter, with revenue growth exceeding expectations, the full-year revenue guidance of 7.5% fell short of the consensus forecast of 9.4%. This discrepancy suggests potential challenges in maintaining the same level of revenue growth.
Additionally, Paycom’s retention rate has stabilized, and the company has made strategic moves by opening new offices and promoting Bob Foster to CFO. However, these initiatives are expected to yield more substantial benefits in the coming years rather than immediately. Although Roberge acknowledges the positive steps Paycom is taking, the current outlook and anticipated timeline for growth improvements contribute to his decision to maintain a Hold rating.
In another report released on January 31, Mizuho Securities also maintained a Hold rating on the stock with a $210.00 price target.