Paycom initiated with an Underperform at MoffettNathanson

MoffettNathanson analyst Jackson Ader initiated coverage of Paycom (PAYC) with an Underperform rating and $310 price target. On the Human Capital Management, or HCM space broadly, Ader argues that strength in 2022 may "portend later cycle impact in 2023" after the group "held up remarkably well relative to the rest of software in 2022 from both a trading and a fundamental perspective." On specific names, Ader argues that "at the poles," current multiples imply "too much optimism" for Paycom and "too much pain" for Workday (WDAY), which he started with an Outperform rating.