What Are Wall Street Analysts' Target Price for Paycom Software Stock?
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With a market cap of $15 billion, Paycom Software, Inc. (PAYC) provides a cloud-based human capital management (HCM) software solution delivered as a service for small to mid-sized U.S. businesses. Its comprehensive HCM suite streamlines the entire employee lifecycle, from recruitment to retirement, through integrated tools for talent acquisition, payroll, time and labor management, HR administration, and workforce analytics.
Shares of the Oklahoma City, Oklahoma-based company have outperformed the broader market over the past 52 weeks. PAYC has climbed 42.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 12%. Moreover, shares of Paycom Software are up 25.5% on a YTD basis, compared to SPX’s 1.1% gain.
Focusing more closely, the human-resources and payroll software maker has also outpaced the Industrial Select Sector SPDR Fund’s (XLI) 14.6% return over the past 52 weeks and a 9.2% YTD gain.
Shares of Paycom jumped over 9% following its Q1 2025 earnings release on May 7. Production-adjusted revenue rose 6% year-over-year to $530.5 million while adjusted EPS increased 8% to $2.80, both topping analyst forecasts. Additionally, the company raised full-year guidance for revenue to as high as $2 billion while significantly boosting adjusted EBITDA guidance to $843 million - $858 million.
For the fiscal year ending in December 2025, analysts expect PAYC’s EPS to decrease 16.6% year-over-year to $7.19. However, the company's earnings surprise history is promising. It topped the consensus estimates in the last four quarters.
Among the 18 analysts covering the stock, the consensus rating is a “Hold.” That’s based on three “Strong Buy” ratings and 15 “Holds.”
This configuration is slightly more bullish than three months ago, with two “Strong Buy” ratings on the stock.
On May 12, KeyBanc raised its price target on Paycom to $285 and maintained an “Overweight" rating, citing stronger bookings driven by improved execution and greater sales and marketing efficiency.
As of writing, PAYC is trading above the mean price target of $238.43. The Street-high price target of $285 implies a potential upside of 10.2% from the current price levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.