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Investing.com - BMO Capital has raised its price target on Paylocity Holding (NASDAQ:PCTY) to $230.00 from $226.00 while maintaining an Outperform rating on the stock. The $10.47 billion market cap company currently trades at $189.26, with analyst targets ranging from $142 to $270. According to InvestingPro data, the company maintains strong financial health with an overall score of "GOOD."
The price target increase follows Paylocity’s fourth-quarter results, which BMO noted came in slightly better than expected with an above-average recurring revenue beat.
BMO highlighted that Paylocity’s fiscal year 2026 recurring revenue guidance, excluding float, was approximately 50 basis points higher than the firm’s outlook.
The investment bank cited Paylocity’s strong product positioning, its Finance suite offering, potential tailwinds in the broker partner channel, and relatively stable macroeconomic trends as factors supporting a pathway for recurring growth upside potentially reaching the low-teens.
BMO also noted that capital returns via share buybacks contribute to its positive stance on the stock, reinforcing its decision to maintain an Outperform rating while raising the price target.
In other recent news, Paylocity Holding reported impressive fourth-quarter fiscal results, surpassing analyst expectations. The company delivered an earnings per share (EPS) of $0.86, exceeding the forecasted $0.75 by 14.67%. Additionally, Paylocity’s revenue reached $400.7 million, outpacing the anticipated $388.53 million. The human capital management software provider also expanded its client base by 7% over the year. Following these results, KeyBanc raised its price target for Paylocity to $225 from $220, maintaining an Overweight rating. KeyBanc described the company’s performance as "solid," highlighting the strong top and bottom line results. These developments reflect Paylocity’s continued growth and market presence.
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