Paycom price target lowered to $162 from $193 at Citi

Citi lowered the firm’s price target on Paycom to $162 from $193 and keeps a Neutral rating on the shares. Sentiment in HR Software “has gone from bad to worse” following Workday’s (WDAY) disappointing report, says the analyst, who notes Q1 results from the group indicated a stable-to-worse macro backdrop with indications of down-market churn and no improvement or a worsening of sales cycles upmarket. The firm is adjusting its estimates and price target across the U.S. Application Software group to account for what it expects to be conservative guides into FY25 along with an updated valuation regression.