CTAs keep buying Treasuries, gold longs face stop-loss risk: BofA
Investing.com - Cantor Fitzgerald initiated coverage on Paylocity Holding (NASDAQ:PCTY) with an Overweight rating and a $215.00 price target on Thursday. According to InvestingPro data, the company maintains strong financial health with impressive gross margins of 69% and 11 analysts recently revising earnings estimates upward.
The research firm cited Paylocity’s strong quantitative setup as a key factor in its bullish outlook, noting it sees a path for the company to beat expectations and raise guidance throughout fiscal years 2026 and 2027. The company has demonstrated solid performance with 13.7% revenue growth in the last twelve months, though it currently trades at a relatively high P/E ratio of 42.3. For deeper insights into Paylocity’s valuation metrics and growth potential, check out the comprehensive analysis available on InvestingPro.
Cantor Fitzgerald highlighted the company’s Airbase platform, which has been rebranded to Paylocity for Finance, as a significant differentiator from competitors in the human capital management software space.
The firm believes this finance platform provides Paylocity with a $250 million cross-selling opportunity across its existing customer base.
Paylocity offers cloud-based payroll and human capital management software solutions primarily targeting mid-sized organizations.
In other recent news, Paylocity Holding reported its fourth-quarter 2025 earnings, surpassing analyst expectations with an earnings per share of $0.86, which was 14.67% higher than the forecasted $0.75. The company’s revenue also exceeded projections, reaching $400.7 million compared to the anticipated $388.53 million. Following these results, BMO Capital raised its price target for Paylocity to $230, maintaining an Outperform rating, citing an above-average recurring revenue beat. Similarly, KeyBanc increased its price target to $225 from $220, keeping an Overweight rating and describing the fiscal results as "solid." KeyBanc also noted that Paylocity grew its client base by 7% over the year. These developments reflect positively on the company’s financial performance and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.