PCTY Stock Price: $200 Target By Truist

By Amit Chowdhry ● November 10, 2020
  • Paylocity Holding Corp (NASDAQ: PCTY) has received a price target increase from $155 to $200 by Truist. These are the details.

Paylocity Holding Corp (NASDAQ: PCTY) has received a price target increase from $155 to $200 by Truist. Truist analyst Terry Tillman is also maintaining a “Buy” rating on the shares.

Tillman cited the company’s Q1 results as being better-than-expected and the adjusted EBITDA topped expectations. And Tillman noted that the company’s R&D has been a key focus for Paylocity management in order to differentiate its platform.

For the first-quarter fiscal 2021, Paylocity reported non-GAAP earnings of 38 cents per share. And the company reported revenues of $135.8 million — which is up 7% year-over-year. The top-line increased was largely driven by an 11% increase in recurring revenues (99% of total revenues) — which had totaled $134.9 million. But interest income on funds that were held for clients fell 81% to $919 million.

Paylocity has especially benefitted from the growing adoption of its solutions from clients with under 50 employees.

The non-GAAP gross profit was at $94.2 million, up 4.3% year-over-year. And adjusted EBITDA climbed 1.3% year-over-year to $30.8 million. Paylocity’s non-GAAP operating income fell to $21.4 million compared to $21.5 million year-over-year.

Paylocity exited the quarter with cash, cash equivalents, and corporate investments of $240 million compared to $285.4 million in the previous quarter. And as of September 30, 2020, the company had long-term debt of $100 million.

In the second quarter of fiscal 2021, Paylocity is expecting revenues of $141 million and $145 million. And adjusted EBITDA is projected somewhere between $26.5 million and $29.5 million.