Citizens JMP reiterates Market Outperform rating on Paylocity stock

Investing.com - Citizens JMP maintained its Market Outperform rating and $270.00 price target on Paylocity Holding (NASDAQ:PCTY) following recent industry developments. According to InvestingPro data, the company maintains impressive gross profit margins of 69% and currently trades at $178.02, suggesting potential upside to analyst targets.

The firm’s decision comes after Dayforce announced it has entered into a definitive agreement to be acquired by Thoma Bravo for $12.3 billion.

According to Citizens JMP, the Dayforce acquisition represents a 2026E EV/revenue multiple of 5.7x and a 2026E EV/adjusted EBITDA multiple of 17.2x.

The firm noted that Paylocity stock has fallen 8% year-to-date, underperforming compared to the Russell 3000 index, which has increased 8% during the same period.

Citizens JMP’s maintained rating suggests continued confidence in Paylocity’s market position despite the recent share price decline and competitive landscape changes.

In other recent news, Paylocity Holding has reported impressive fourth-quarter 2025 results, surpassing analyst expectations. The company delivered an earnings per share of $0.86, exceeding the forecasted $0.75 by 14.67%. Revenue also outperformed projections, reaching $400.7 million compared to the expected $388.53 million. Following these results, BMO Capital raised its price target for Paylocity from $226.00 to $230.00, maintaining an Outperform rating due to the above-average recurring revenue. Similarly, KeyBanc increased its price target from $220.00 to $225.00, describing the results as "solid" with notable growth in the client base by 7% for the full year. Cantor Fitzgerald initiated coverage on Paylocity with an Overweight rating and a price target of $215.00, highlighting a strong quantitative setup and potential for exceeding expectations in future fiscal years. These developments reflect a positive outlook from analysts on Paylocity’s financial performance and growth trajectory.

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