Read How Analysts Reacted To Paycom Software's Q1 Results

Analysts reiterated their ratings on Paycom Software, Inc PAYC post Q1 results.
Needham analyst Ryan MacDonald reiterated the Buy rating and $450 price target on Paycom Software following the company's stellar start to FY22, in which revenue and adjusted EBITDA exceeded consensus expectations.
PAYC put up a sizeable 1Q22 beat and raise driven by solid sales productivity that led to notable success in the 1,000+ employee segment of the market.
Conversions of the existing customer base to BETI continued to trend well, with over 25% of the customer base has implemented the solution.
MacDonald believes its combination of 100% domestic exposure, Rule of 65 economics, and ramping FCF margins warrant a premium valuation and position shares well for sustained outperformance in FY22 despite the challenging macro-environment.
Credit Suisse analyst Kevin McVeigh maintained Paycom Software with an Outperform and lowered the price target from $425 to $350.
McVeigh expects the PAYC stock to rally on the Q1 beat and 2022 raise.
McVeigh remains bullish on its continued recurring revenue growth fueled by new business, which increased FY22 guidance.
Despite interest- and geopolitical-fueled volatility, the PAYC stock appears poised to benefit from generational technology shifts in do-it-yourself [DIY] employee consumption.
Innovative, cloud-native solutions such as Better Employee Transaction Interface [Beti] empower employees to do their payroll.
Displacing inefficient solutions could fuel further retention, currently 94%, up from a low 90% several years ago.
Price Action: PAYC shares closed higher by 14.3% at $329.61 on Wednesday.

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