Dayforce price target lowered to $70 from $80 at Mizuho

Mizuho analyst Siti Panigrahi lowered the firm’s price target on Dayforce to $70 from $80 and keeps an Outperform rating on the shares. The cloud payroll sector has been underperforming due to “lackluster results” over the past several quarters, the analyst tells investors in a research note. The firm says that given the continued weak macro data pointing to decelerating payroll growth, coupled with company-specific challenges, it expects no significant recovery over the near-term. However, the valuation multiple for the payroll group has compressed from a 70% premium to software-as-a-service in 2022) to 20% discount now, Mizuho adds.