
Paycom Software (PAYC) Stock Forecast & Price Target
Paycom Software (PAYC) Analyst Ratings
Bulls say
Paycom Software is a fundamentally sound company with a strong customer base and recurring revenue model that has shown consistent growth. The company's focus on fundamentals and disciplined sales execution has led to strong results, with recurring revenue growing by 12% in Q2, and 11% in 3Q and 4Q of 2025. With the company guiding to 7.5% FY26 growth, and recent sales training expected to drive upside and stronger win rates in 2026, Paycom presents a favorable risk-reward profile for investors. Attractive valuation, with a current GAAP P/E of 13x CY27E and a strong focus on share buybacks further add to the positive outlook for this company.
Bears say
Paycom Software is facing pressure due to lowered near-term estimates and long-term uncertainty, leading to a lower target price of $180 from $210 based on a 3-stage DCF analysis. The company trades at a relatively high EV/NTM revenue and EV/NTM recurring revenue compared to its peers, and faces risks such as the potential impact of AI on headcount and competition in the market. Management is confident in the company's value proposition, but there is still room for margin expansion and revenue growth as the company continues to ramp up its salesforce.
This aggregate rating is based on analysts' research of Paycom Software and is not a guaranteed prediction by Public.com or investment advice.
Paycom Software (PAYC) Analyst Forecast & Price Prediction
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