KeyBanc has revised its price target for Dayforce (DAY, Financial), bringing it down to $65 from the previous $80. This adjustment reflects the recent valuation decline across the software sector. Despite this downward revision, the firm maintains an Overweight rating on Dayforce shares.
As investors approach the upcoming payroll SaaS earnings season, a general sense of caution prevails. KeyBanc has noted increased scrutiny in deal-making processes, particularly among mid-market partners. However, the firm draws reassurance from its KBCM SMB survey conducted in the first half of the year, along with recent employment data, which indicate modest expectations for workforce growth.
Given these factors, KeyBanc anticipates that Dayforce's first-quarter performance is likely to align with market expectations, predicting a more in-line result.
