Dayforce continues to see new client acquisition opportunities, says BMO Capital

BMO Capital keeps an Outperform rating and $75 price target on Dayforce after the firm’s 2024 BMO Virtual Software Conference meetings with its CEO. The management is planning the next leg of its growth journey as the company approaches their $2B revenue target, suggesting that a new $5B revenue/$1B free cash flow framework is the next goal with a path to these goals about 7 years out, the analyst tells investors in a research note. The company also continues to see new client acquisition opportunities, which is increasingly supported by a scaled partner ecosystem, BMO added.