
Paycom Software (PAYC) Stock Forecast & Price Target
Paycom Software (PAYC) Analyst Ratings
Bulls say
Paycom Software Inc. is projected to experience significant financial growth, with recurring and other revenue expected to increase approximately 9% to $1.915 billion and adjusted EBITDA guided to grow around 7% to between $820 million and $840 million, surpassing analysts' expectations. The company reported a year-over-year revenue growth of 13.6%, with recurring revenue rising 14.5% and float revenue by 1.2%, showcasing a robust demand for its human capital management platform. Additionally, continued investments in its international business and effective execution in new customer acquisition and upselling strategies indicate a strong potential for sustained growth, reinforcing a positive outlook for Paycom's financial performance in the upcoming quarters.
Bears say
Paycom Software Inc. is facing a negative outlook primarily due to its weaker-than-expected top line guidance for fiscal 2025, forecasting a year-over-year revenue decline of 11%, with initial revenue projections at $110 million compared to $125 million in interest income for 2024. Additionally, the company reported stagnant gross revenue retention at 90%, indicating potential challenges in customer retention and expansion within its existing client base. The decline in float revenue, guided at approximately $110 million, represents an 11.2% decrease, further exacerbating the company's financial challenges in the near term.
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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