Aug. 14 at 2:21 PM
Cantor Begins Coverage on HCM: Paylocity, Workday, and Paycom
Cantor Fitzgerald started coverage of Paylocity (PCTY), Workday (WDAY), and Paycom (PAYC), noting the HCM sector is stabilizing after the post-pandemic slowdown.
PCTY: Overweight,
$215 target; poised to “beat and raise” in FY2026-27, aided by Airbase cross-selling opportunities.
WDAY: Overweight,
$265 target; high-quality company with growth and margin expansion potential, trading near historic low multiples.
PAYC: Neutral,
$230 target; fairly valued after operational improvements and strategy adjustments.
HCM now shows ~10% annual revenue growth expectations for 2026, with valuations around 5.5x EV/Revenue and 22x 2026 EPS.
$PAYC $PCTY $WDAY