Paycom downgraded to Market Perform from Outperform at TD Cowen

TD Cowen downgraded Paycom to Market Perform from Outperform with a price target of $202, down from $331. The company’s Q3 featured a missed quarter on growth and a transition period through 2024 primarily due to Beti revenue cannibalization impacts on its base, the analyst tells investors in a research note. The firm says the magnitude of the downside surprise is notable with fiscal 2024 growth of 10%-12%, or only 50% of consensus forecasts. TD expects the shares to “remain capped with ramped uncertainty.”