Paylocity Holding (PCTY) PT Raised to $150 at Needham & Company

Needham & Company analyst Scott Berg raised the price target on Paylocity Holding (NASDAQ: PCTY) to $150.00 (from $140.00) while maintaining a Buy rating.

The analyst commented, "Paylocity exited FY20 on a very positive note with strong Q4 financial results while exiting June with Pre-COVID like demand trends seen by other HCM competitors. While ASPs are naturally lower with lower customer payrolls, customer count increased 21% Y/Y, in line with FY19, which suggests PCTY was likely ahead of FY19's customer acquisition pace when adjusting for COVID impact. We were encouraged by strong product usage commentary suggesting customer engagement with the Paylocity platform continues to rise which is a strong indicator of customer retention over time. PCTY did not give FY guidance due to the current macro uncertainties which we view as prudent given a June fiscal year end. However, shares may be weak due to adjusted EBITDA guidance below consensus as the company re-starts the investment engines to meet the strong demand."

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