TD Cowen Raises Paycom (PAYC) Price Target, Maintains Hold Rating

On June 4, TD Cowen increased its price target on Paycom Software, Inc. (NYSE:PAYC) to $250 from $241 while maintaining a Hold rating, citing early signs of strategic recovery and improving internal execution. The adjustment follows a recent meeting with company leadership, which left the firm cautiously optimistic about Paycom’s trajectory.

A close-up of two software engineers typing away at laptops in a modern, well-lit office.

According to analyst Jared Levine, Paycom Software, Inc. (NYSE:PAYC) appears to have regained its footing after a period of volatility, with management signaling a renewed focus on growth initiatives. This shift has started to resonate with investors, helping lift sentiment following a strong stock run. While noting that the company is “back on the offensive,” TD Cowen is looking for clearer evidence that recent progress can translate into sustained momentum. Key watchpoints include consistent top-line expansion, stronger client retention, and disciplined capital expenditure over the medium term.

Paycom Software, Inc. (NYSE:PAYC)’s efforts to refine its go-to-market approach and enhance platform engagement were highlighted as constructive developments. However, Cowen believes more time is needed to fully assess the durability of these improvements, particularly in a competitive HR tech landscape.

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