Two Reasons Paycor Analyst Likes About Its Talenya Acquisition

Needham analyst Scott Berg reiterated a Buy on Paycor HCM, Inc PYCR and a $42 price target.
Paycor announced the acquisition of Talenya, a small HCM vendor with an advanced AI toolset to enhance how recruiters search for candidates.
Berg liked the acquisition from a high level as it played on two hot trends within the HCM space today, more advanced recruiting tools and technology to improve DE&I.
He did not update his estimates as the Talenya acquisition is immaterial, bringing Paycor much less than $5 million in annual revenues, hence the lack of financial disclosure, including purchase price, which he assumed should be $25 million or less.
He would expect the company to integrate this as a separate module, which will increase PEPM and fit well into its target end market, which is more and more focused on companies with more than 100 employees.
Price Action: PYCR shares traded higher by 4.13% at $29.14 on the last check Monday.