Paychex deal for Paycor HCM would be ‘strategically sound,’ says Stifel

Stifel notes that Bloomberg reported Paychex (PAYX) is in talks to acquire Paycor HCM (PYCR), which the firm says would be a “strategically sound” acquisition given that Paycor would substantially enhance Paychex’s offering and presence in the mid-market. While the firm believes an all-cash transaction would be free cash flow dilutive near-term and earnings neutral/cash flow dilutive in FY26 if an all-stock deal, it adds that there are “too many variables to pinpoint the financial impact.” Stifel has a Hold rating and $141 price target on Paychex shares.