From Yahoo Finance: 2025-05-25 17:03:00

Jefferies increased its price target on Paycom Software, Inc. (NYSE: PAYC) from $130 to $155 while maintaining a Hold rating. This reflects an updated assessment of the company’s market position and potential performance in the software industry.

Paycom Software, Inc. (NYSE: PAYC) reported $531 million in Q1 2025, a 6% year-over-year increase in revenue. Its Net Promoter Score rose by 16 points, with automation tools like GONE showing high ROI of up to 800%. The company onboarded a group of restaurants with 2,500 employees, showcasing excellent sales execution.

Despite having no debt and $521 million in cash, Paycom Software, Inc. (NYSE: PAYC) faces challenges like a 10% YoY reduction in interest on client funds and a forecasted 12% full-year drop. Continued AI investments may lead to lower free cash flow, impacting growth in the forms industry due to seasonality and macroeconomic factors.

While acknowledging PAYC’s growth potential, some AI stocks may offer higher returns with limited downside risk. For those seeking a promising AI stock with 100x upside potential, a report on the cheapest AI stock is available. This suggests exploring other investment options in the AI sector for better returns.



Read more at Yahoo Finance: Jefferies Increased the Price Objective of Paycom Software, Inc. (PAYC)