On Tuesday, Piper Sandler maintained a Neutral rating on Dayforce (NYSE:DAY) stock with a price target of $68.00. The company’s assessment follows a recent meeting with Dayforce Executive Vice President and Chief Financial Officer Jeremy Johnson, which provided insights into the company’s current needs, international trends, revenue mix and profit profile.
Discussions with the company’s executive vice president and chief financial officer also touched on the progress of implementations for some of Dayforce’s key customers. Piper Sandler expressed a continued positive outlook on Dayforce’s products, market strategy and long-term growth potential.
The confirmation of the Neutral rating and target price reflects a balanced view of the company’s growth opportunities amid the current backdrop of macroeconomic uncertainty and the timing of revenue recognition on large contracts.
Piper Sandler believes Dayforce is a modern human capital management (HCM) solutions provider with strong growth prospects. The company acknowledges the healthy demand for modern HCM platforms and expects Dayforce to maintain strong growth momentum.
Nonetheless, ongoing macroeconomic uncertainty and the timing related to large client transactions influenced the company’s decision to maintain its current stock stance and price target.
The financial institution’s stance on Dayforce remains unchanged and it will continue to monitor the company’s performance in light of the broader economic environment and the potential impact on its business operations. Piper Sandler’s stock assessment of Dayforce is an indicator of the company’s market position in the HCM industry and future expectations.
In other recent news, Dayforce has been the focus of several financial firms with varying views on the company’s future. TD Cowen lowered its price target on Dayforce to $53, maintaining a hold rating and raising revenue forecasts for fiscal 2024, 2025 and 2026. Free cash flow estimates for the same period.
BMO Capital maintains a positive outlook for Dayforce, saying it has ambitious growth goals of $5 billion in revenue and $1 billion in free cash flow in about seven years. The company maintained an outperform rating and $75 price target. However, CFRA downgraded Dayforce stock to hold from buy, citing concerns about potential slowing revenue growth and high leverage.
Mizuho Securities raised its target price on Dayforce to $80 and reiterated a buy rating. The company’s FY24 recurring revenue forecast for Dayforce remains at $1.166 billion, and it raised its total revenue forecast to $1.733 billion. While there are varying views on Dayforce’s future performance, recent developments reflect a consensus on Dayforce’s growth potential.
Investment Professional Insights
Piper Sandler’s neutral stance on Dayforce (NYSE:DAY) is supplemented by several key metrics and insights from InvestingPro. The company has a market capitalization of US$7.95 billion and a price-to-earnings ratio of 150.21, indicating investors’ expectations for future profit growth. Gross margin was a whopping 48.37% for the trailing twelve months ended Q1 2024, which lines up with one of InvestingPro’s tips, which highlighted Dayforce’s impressive gross margin, which supports the company’s ability to generate significant revenue while effectively Ability to manage costs.
Despite the recent price decline, with the stock trading near its 52-week low and down 22.19% over the past three months, analysts remain optimistic about Dayforce’s profitability. This optimism is reflected in another InvestingPro Tip, which suggests net profit is expected to grow this year. Additionally, 13 InvestingPro tips are available to learn more about Dayforce’s financial health and market position. For those interested in delving deeper, use the coupon code PRONEWS24 Save up to 10% on annual Pro subscriptions and annual or two-year Pro+ subscriptions at InvestingPro.
Dayforce’s revenue grew 18.97% in the past 12 months as of the first quarter of 2024, demonstrating strong sales performance. Investors will be keen to see whether this growth trajectory continues in line with market expectations, as its next earnings report is scheduled for July 31, 2024. As Piper Sandler noted, the company’s commitment to innovation and market expansion in the HCM industry is likely to remain a key factor in its future performance.
This article was generated with the support of artificial intelligence and reviewed by an editor. For more information, please see our terms and conditions.
