Home Market News Paycom Software Receives Buy Rating at BofA, Showing Promise for Further Growth

Paycom Software Receives Buy Rating at BofA, Showing Promise for Further Growth

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Paycom Software Receives Buy Rating at BofA, Showing Promise for Further Growth
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Paycom Software, listed on the NYSE under the ticker symbol PAYC, saw a slight 1% dip in its stock price despite receiving a Buy rating from Bank of America (BofA).

In a note, analyst Adam Bergere highlighted that the company has achieved a strong compound annual growth rate of 25% over the past five years and has captured a significant share of the $32.5B global total addressable market in human resources software.

Bergere believes that Paycom Software is well-positioned to continue gaining market share and projects a revenue and free cash flow growth rate of over 20% for the foreseeable future.

Although the stock has experienced a 19.2% decline year-to-date, Bergere sees this as an attractive opportunity for investors to enter the market.

Meanwhile, BofA initiated coverage on Paylocity Holding Corp. (NASDAQ:PCTY), another HR software firm, with a Neutral rating. The stock saw a 1.7% decline at the time of writing. This rating aligns with the SA Quant system rating of Hold but differs from the average sell-side analyst rating of Buy.