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Investing.com - Piper Sandler initiated coverage on Dayforce (NYSE:DAY) with an Overweight rating and a $25.00 price target on Tuesday. According to InvestingPro data, the company maintains strong financial health with impressive gross profit margins of 94% and holds more cash than debt on its balance sheet.
The research firm acknowledged that investor sentiment has declined following Dayforce’s first two earnings reports of 2025, primarily due to concerns about a potential plateauing of Ojemda approximately one year after its launch. Despite recent challenges, analysts maintain a bullish stance, with seven analysts recently revising their earnings estimates upward for the upcoming period.
Piper Sandler believes the recent stock decline is "overdone" and attributes the early deceleration in Ojemda’s performance to the unique characteristics of its cancer indication, where prescribing physicians tend to be risk-averse and slow to adopt new therapies.
The firm noted that while growth may be more gradual than initially expected by investors, it maintains confidence that the clinical data will support strong market penetration over the longer term.
Dayforce’s Ojemda product remains central to Piper Sandler’s bullish outlook, despite the more measured adoption rate observed in recent quarters.
In other recent news, Day One Biopharmaceuticals reported a robust financial performance for the second quarter of 2025, marked by strong revenue growth. The company attributed its success to strategic expansions and a focus on its primary product, Ogemda. Although specific earnings per share data was not disclosed, the revenue growth has been a significant factor in boosting market confidence. The company’s expansion plans in Europe are also seen as a positive development, further enhancing investor sentiment. Despite the lack of detailed earnings figures, the overall financial results have been well-received by the market. Analyst firms have yet to provide any upgrades or downgrades, but the recent developments suggest a favorable outlook. These recent developments reflect the company’s strategic efforts to strengthen its market position.
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