Pacific Crest Starts Paylocity Holding (PCTY) at Sector Weight
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
Pacific Crest initiates coverage on Paylocity Holding (NASDAQ: PCTY) with a Sector Weight rating. Analyst Trevor Upton sees upside as limited.
"Paylocity is a leading provider of payroll and HCM to SMBs and is taking share from legacy payroll vendors. We see upside to estimates, which are too conservative, in our view. However, with near-term risks around F2Q17 guidance and ACA exposure, we think upside could be limited in the near term," said Upton.
The analyst added, "We expect Paylocity to continue to grow revenue and expand margins. Its planned launch of the recruiting module in early C2017 should benefit growth. We think investors should own the shares at market weight, but we see risk around ACA seasonality and exposure in the near term. We think investors can be patient with shares trading near PCTY's average EV/S multiple."
Shares of Paylocity Holding closed at $41.47 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Jefferies Raises Price Target on FMC Technologies (FTI) After Adjusting Estimates
- Jefferies Remains Sidelined on FirstEnergy (FE) After Adjusting Forecast
- BMO Capital Raises Price Target on ManpowerGroup (MAN) Following 3Q Surprise
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, New Coverage
Related EntitiesPacific Crest Securities
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!