Paylocity stock price target raised to $225 from $220 at KeyBanc

Investing.com - KeyBanc raised its price target on Paylocity Holding (NASDAQ:PCTY) to $225.00 from $220.00 on Wednesday, while maintaining an Overweight rating on the stock. The new target aligns closely with InvestingPro’s Fair Value analysis, which suggests the stock is currently fairly valued.

The price target adjustment follows Paylocity’s fourth-quarter fiscal results, which KeyBanc described as "solid" with the company "beating handily on the top and bottom line." The human capital management software provider, which maintains impressive gross profit margins of 68.77% and generated $1.6 billion in revenue over the last twelve months, also grew its client base by 7% for the full year.

KeyBanc noted that while Paylocity’s initial fiscal year 2026 guidance came in slightly below Street expectations, management had "appropriately telegraphed potential conservatism" ahead of the earnings report, suggesting the outlook would be "viewed as better than feared."

The firm expressed "incrementally more confidence" in Paylocity’s sales execution, which contributed to the modest price target increase. KeyBanc’s analysis indicates the results could serve as a positive indicator for industry peers Dayforce (DAY) and Paycom (NYSE:PAYC).

KeyBanc highlighted Paylocity’s "better results and commentary on healthy demand" as particularly encouraging factors in its assessment of the company’s performance and prospects. The company’s market capitalization stands at $10.51 billion, reflecting its significant presence in the human capital management software sector.

In other recent news, Paylocity Holding delivered impressive financial results for Q4 2025, surpassing analyst expectations. The company reported an earnings per share (EPS) of $0.86, which is a 14.67% surprise over the forecasted $0.75. Revenue also exceeded projections, coming in at $400.7 million compared to the expected $388.53 million. These results highlight Paylocity’s strong performance in the recent quarter. Despite these positive earnings and revenue figures, Paylocity’s stock experienced a decline. However, the earnings and revenue outcomes remain a focal point for investors assessing the company’s financial health. Such developments are crucial as they reflect the company’s ability to outperform market predictions. Investors and analysts alike are likely to keep a close eye on Paylocity’s future performance in light of these results.

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