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Stifel Raises Target On Paycom Software From $35 To $44 Ahead Of Q1 Results

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Paycom Software Inc PAYC 1.21% is set to report another solid quarter and build on its string of eight solid quarterly prints as a public company, according to a note from Brad Reback of Stifel.

Oklahoma-based Paycom is slated to report its first-quarter numbers on May 3 after market close. Reback said, "Overall, we are looking for at least an in-line print on the top-line and bottom-line given our checks, solid results out of Ultimate Software last week, and Paycom's streak of strong sales execution."

Reback sees first quarter EPS/revenue $0.18/$83.5 million versus consensus of $0.20/$83.5 million and company's revenue guidance of $82 million–$84 million.

The analyst noted that the key focus of the call will be around ANRR and ACA commentary.

"While we note some modest potential headwinds from Paycom's exposure to energy dependent geographies and difficult 2H16 ANRR comps stemming from ACA, the bottom line is that we expect Paycom to deliver a solid 1Q," Reback elaborated.

The analyst also highlighted the company, a provider of cloud-based human capital management (HCM) software, should record healthy sales and EPS growth in the coming years due to its limited penetration of a large market opportunity.

Reback, who has a Buy rating on the stock, raised his price target to $44 from $35.

At the time of writing, shares of Paycom were up 1.88 percent to $38.93.

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