Paycom downgraded to Hold from Buy at Needham

Needham downgraded Paycom to Hold from Buy with no price target. The company’s Q3 revenue was below the low end of guidance and its Q4 outlook was below the previously implied midpoint, with BETI revenue cannibalization being much greater than the firm previously estimated, the analyst tells investors in a research note. Needham now sees much lower growth anticipated through 2024 due primarily to the BETI headwind combined with lower cross-sales and a potentially deteriorating macro hurting new sales bookings, the firm added.