Paylocity upgraded to Outperform from Neutral at Mizuho

Mizuho analyst Siti Panigrahi upgraded Paylocity (PCTY) to Outperform from Neutral with a price target of $235, up from $200. Over the past two years, the cloud payroll sector has underperformed due to lackluster results, concerns about macro headwinds, and interest rate hikes, the analyst tells investors in a research note. The firm believes the worst is behind the sector, saying growth is stabilizing, particularly with the labor market remaining resilient and slower rate increases making for easier year-over-year compares. Mizuho particularly likes Paylocity, as it believes the company is well positioned relative to peers given its “strong” sales momentum and recent Airbase acquisition.