Asia FX dithers as dollar steadies before Powell speech; yen muted after CPI data
Investing.com - BMO Capital downgraded Dayforce (NYSE:DAY) from Outperform to Market Perform while raising its price target to $70.00 from $67.00 following Thoma Bravo’s acquisition announcement. The stock has shown impressive momentum, gaining over 26% in the past week and currently trading near $68.60, according to InvestingPro data.
The $70 per share offer represents approximately a 32% premium to Dayforce’s unaffected stock price, according to BMO Capital analyst notes.
The transaction values Dayforce at multiples of roughly 6.6x EV/Revenue (LTM) and 22x EV/EBITDA (LTM), based on last twelve months’ financial metrics.
BMO Capital indicates these valuation multiples reflect a small but appropriate premium compared to peer company Paycor (NASDAQ:PYCR), which was acquired in a strategic transaction earlier this year.
The downgrade to Market Perform rating aligns with the acquisition price target, suggesting limited additional upside potential beyond the announced deal value.
In other recent news, Dayforce has agreed to be acquired by Thoma Bravo in an all-cash transaction valued at $12.3 billion. Under the terms of the agreement, Dayforce stockholders will receive $70 per share, marking a 32% premium to the unaffected share price. Following this announcement, TD Cowen downgraded Dayforce from Buy to Hold, while raising its price target from $67.00 to $70.00. This comes after Dayforce confirmed it was in advanced discussions with Thoma Bravo, which had been reported by Bloomberg earlier. UBS has reiterated its Buy rating and maintained a $72.00 price target on Dayforce amidst these acquisition talks. Similarly, BMO Capital has reiterated an Outperform rating with a $67.00 price target, although it stated it has no specific insight into the transaction’s potential. These developments highlight the significant interest and actions surrounding Dayforce in the investment community.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.