Paycom downgraded to Hold from Buy at Stifel

Stifel analyst Brad Reback downgraded Paycom to Hold from Buy with a price target of $160, down from $400. The company posted sales results below the low-end of guidance that management attributed to lower than expected pre-employment services revenues and fewer unscheduled payroll runs as customers are now realizing increased operating benefits from Beti, the analyst tells investors in a research note. The firm expects the first half of 2024 to be particularly challenging for the company given the compares and ongoing operational changes inside Paycom.