Cantor Fitzgerald lowers Paylocity stock price target to $190 from $215

Investing.com - Cantor Fitzgerald lowered its price target on Paylocity Holding (NASDAQ:PCTY) to $190 from $215 while maintaining an Overweight rating on Wednesday. The new target still suggests significant upside potential from the current price of $146.19, with InvestingPro data showing the stock is currently trading 35% below its 52-week high of $223.80.

The price target reduction follows Paylocity’s fiscal first-quarter 2026 results, which showed recurring revenue approximately $6 million above Street estimates, with free cash flow and earnings per share delivering strong upside. Despite the positive results, PCTY shares have declined 30.15% year-to-date, potentially creating value for investors as the company maintains impressive 68.94% gross profit margins.

Paylocity management updated its long-term financial targets to reflect an improving demand environment and recent product launches, including Paylocity for Finance (primarily from the Airbase acquired platform) and Paylocity for IT.

Looking forward, the company sees improving demand and faster-than-expected adoption of AI tools, which are driving elevated fiscal year 2026 revenue guidance.

The elevated guidance stems from a combination of cross-selling opportunities and organic expansion by customers resulting from improved usage, according to Cantor Fitzgerald.

In other recent news, Paylocity Holding reported its first-quarter fiscal 2026 earnings, showcasing a mixed financial performance. The company achieved a revenue of $408.2 million, exceeding expectations and reflecting a 12% year-over-year growth. However, earnings per share (EPS) fell short of forecasts, coming in at $0.86 compared to the anticipated $1.57, marking a 45.22% miss. Analysts have responded to these developments with various adjustments to Paylocity’s stock price targets. Jefferies lowered its price target to $180 while maintaining a Buy rating, citing sector concerns despite the company’s strong recurring revenues and EBITDA. Citizens adjusted its target to $245, maintaining a Market Outperform rating, highlighting Paylocity’s product differentiation and innovation, such as its AI Assistant feature. BMO Capital set a new target of $185, noting the results were in line with previously flagged expectations. Mizuho also reduced its target to $180, maintaining an Outperform rating, acknowledging the company’s solid quarter despite peer multiple compression.

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