Paycom downgraded to Neutral from Buy at Citi

Citi analyst Steven Enders downgraded Paycom to Neutral from Buy with a price target of $189, down from $360. The company reported a revenue miss and guide down as efforts to drive Beti cross-sell drove fewer payroll corrections and cannibalized services sales, the analyst tells investors in a research note. The firm downgraded the shares on concerns around the timeline to a growth recovery and further potential headwinds to estimates. Citi believes a new valuation framework is likely as sustained 20% growth for Paycom “appears off the table for the next few years.”