Paycom eyes record gain after Q3 results beat, multiple Wall Street PT hikes

Paycom Software

31/10/2024 15:57

** Paycom Software's  PAYC.N  stock up 23.1% at $212 and easily
top S&P 500  .SPX  performer on Thurs as Wall Street analysts
scurry to raise their price targets after qtrly results beat
expectations
    ** Stock on course for biggest one-day pct gain on record
** Payroll processor late Weds reported Q3 rev of $452 mln,
above LSEG estimate of $447 mln
    ** Adj EPS in qtr of $1.67 exceeds consensus by 6 cents
    ** Paycom has seen a rise in interest in its Beti service,
which allows for self-service payroll and automation
** Its results come after rival Automatic Data Processing
 ADP.O  raised its 2025 rev growth forecast following recent
acquisition of management services provider WorkForce Software
** At least 8 analysts hike their PTs on PAYC, including JP
Morgan, Citigroup and Barclays
    ** Recommendation breakdown on PAYC is 1 "strong buy", 3
"buy" and 18 "hold" ratings; median PT of $185 up from $176.25 a
month ago and $171.50 on Jul 31 - LSEG
    ** With move on the session, shares swing into positive
territory by  ~2.5%. S&P 500 Industrials sector  .SPLRCI  up 17%
and SPX up 20% in 2024

(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))