Ceridian HCM Holding Inc. (CDAY) PT Raised to $94 at Needham & Company

Needham & Company analyst Scott Berg raised the price target on Ceridian HCM Holding Inc. (NYSE: CDAY) to $94.00 (from $70.00) while maintaining a Buy rating.

The analyst commented, "Ceridian reported Q2 results above our expectations as demand trends steadily improved throughout Q2 and now are at pre-COVID-19 levels, consistent with other Cloud HCM/Payroll vendors. We anticipate Ceridian will grow its less-than- 5% market share in a post-COVID-19 world. Lower float revenue remains a headwind to profitability, but we anticipate investors to look through lower float revenue and focus on improving Dayforce recurring revenue growth that likely re-accelerates beginning in 4Q and lasts several quarters. We expect Dayforce recurring ex. float to return to mid-20% growth in FY21 as COVID-19 fades and the economy returns to a normalized operating environment, which would represent upside versus our current estimates. We increase our PT to $94 from $70."

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