Dayforce stock price target lowered to $67 at TD Cowen on growth concerns

Published 06/08/2025, 21:40
Dayforce stock price target lowered to $67 at TD Cowen on growth concerns

Investing.com - TD Cowen has reduced its price target on Dayforce (NYSE:DAY) to $67.00 from $69.00 while maintaining a Buy rating on the stock. According to InvestingPro data, the stock currently trades at an EV/EBITDA multiple of 39x, with analyst targets ranging from $47 to $95.

The firm cited near-term growth concerns as the primary reason for the adjustment, suggesting that Dayforce shares may remain range-bound in the immediate future.

TD Cowen noted that investors are waiting for confirmation of the implied second-half growth acceleration that Dayforce has projected, creating some hesitancy in the market.

The firm identified the upcoming third-quarter financial results and monthly employment data as the next key catalysts that could potentially move the stock.

Despite the reduced price target, TD Cowen highlighted Dayforce’s "undemanding valuation" at approximately 21 times calendar year 2027 estimated enterprise value to free cash flow, which might attract investors with longer time horizons.

In other recent news, Dayforce Inc reported strong financial results for the second quarter of 2025, with earnings per share reaching $0.61, surpassing the forecast of $0.53 by 15.09%. The company’s revenue also outperformed expectations, totaling $464.7 million compared to the projected $457.93 million. Additionally, Dayforce’s Core constant currency growth was 13.5%, slightly above the consensus estimate of 13.3%, and the company exceeded EBITDA expectations by 4%. Despite these positive outcomes, Jefferies has lowered its price target for Dayforce to $60 from $65, maintaining a Hold rating on the stock. These developments highlight the company’s robust performance amid cautious analyst outlooks.

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