Needham analyst Joshua Reilly has maintained their neutral stance on PAYC stock, giving a Hold rating today.
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Joshua Reilly has given his Hold rating due to a combination of factors surrounding Paycom’s recent performance and future outlook. The company’s fourth-quarter results were solid, with a revenue beat that exceeded recent quarters, yet the 2025 guidance aligned with internal estimates but fell short of broader market expectations. Despite this, the management’s previous commentary about 2025 has been widely acknowledged by investors, and the current guidance, coupled with stable gross revenue retention, is expected to be favorable.
Reilly anticipates that Paycom will experience improved trends in the latter half of 2025, with the first quarter being a potential low point for recurring growth in the ongoing cycle. While there is still a need to keep an eye on customer churn, the analyst expresses a cautiously optimistic view following effective sales execution. As such, these mixed signals, combining both positive and cautious elements, underpin the Hold rating for Paycom’s stock.
In another report released today, Barclays also maintained a Hold rating on the stock with a $221.00 price target.