William Blair analyst Jake Roberge has maintained their bullish stance on DAY stock, giving a Buy rating on February 14.
Jake Roberge has given his Buy rating due to a combination of factors that highlight Dayforce Inc’s strategic initiatives and financial outlook. The company has announced a 5% reduction in its workforce as part of an efficiency plan aimed at enhancing profitability. This plan is expected to result in significant cost savings, which will be partly reinvested into strategic growth initiatives, thereby strengthening the company’s long-term growth prospects.
Furthermore, Dayforce is trading at a slightly lower multiple compared to its peers, suggesting potential undervaluation. The company is making progress on key growth initiatives such as enterprise expansion, full suite offerings, and global payroll, which are expected to drive a robust adjusted EBITDA compound annual growth rate of over 20% in the coming years. These factors, combined with a stable EV/EBITDA multiple, indicate that Dayforce is well-positioned to outperform the market, despite potential risks from competition and macroeconomic conditions.
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