
Paycom Software (PAYC) Stock Forecast & Price Target
Paycom Software (PAYC) Analyst Ratings
Bulls say
Paycom Software Inc., a human capital management software provider, has demonstrated a strong capacity for growth, supported by an increase in new customer acquisition and effective upselling strategies that drive revenue expansion. The company is projected to achieve significant revenue and EBITDA milestones by 2026, with estimates of over $2.36 billion in revenue and $1.025 billion in EBITDA, reflecting a robust outlook driven by improved execution and strategic leadership changes. Additionally, the expansion of its international business is anticipated to enhance contribution margins, reinforcing the company's positive trajectory in upcoming fiscal quarters.
Bears say
Paycom Software's outlook is negatively impacted by weaker-than-anticipated top-line guidance for fiscal year 2025, with growth targets of only 7.5% year-over-year falling short of Street expectations. Additionally, macroeconomic conditions, such as budget scrutiny leading to delays in human capital management (HCM) projects, pose risks to net new sales and customer acquisition efforts. The competitive landscape is also challenging, as pricing pressures from rivals like Paylocity and Paycor result in potential market share losses, further compounding concerns about customer adoption rates and execution issues.
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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