Barclays has revised its price target for Paylocity (PCTY, Financial), bringing it down to $204 from the previous $231. Despite the adjustment, the investment firm maintains an Equal Weight rating on Paylocity shares, aligning with its outlook for the U.S. software sector in the upcoming first-quarter earnings report.
The analysis by Barclays suggests that the first quarter is unlikely to act as a major catalyst for software stocks, including Paylocity. Although their channel checks indicate some softness, the situation is not considered disastrous. The focus, however, is expected to shift toward future guidance rather than immediate quarterly performance.
Barclays expresses uncertainty regarding any significant downward adjustments in guidance by management teams, primarily because the first quarter is generally perceived as less impactful. As a result, the firm anticipates a period of uncertainty for Paylocity and similar companies until the second quarter provides clearer insights.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for Paylocity Holding Corp (PCTY, Financial) is $234.53 with a high estimate of $270.00 and a low estimate of $190.00. The average target implies an upside of 27.48% from the current price of $183.98. More detailed estimate data can be found on the Paylocity Holding Corp (PCTY) Forecast page.
Based on the consensus recommendation from 20 brokerage firms, Paylocity Holding Corp's (PCTY, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Paylocity Holding Corp (PCTY, Financial) in one year is $280.41, suggesting a upside of 52.41% from the current price of $183.98. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Paylocity Holding Corp (PCTY) Summary page.
