Paycom price target raised to $350 from $300 at Mizuho

Mizuho raised the firm’s price target on Paycom to $350 from $300 and keeps a Neutral rating on the shares. Heading into the June quarter earnings season, the analyst expects “beat an raise” quarters from the software-as-a-service sector. A stabilizing macro environment coupled with broader investor enthusiasm around artificial intelligence have driven a re-rating of the sector, the analyst tells investors in a research note. While profitability remains important, investors are once again focused on the potential for companies to “beat and raise” their growth outlooks, especially given the largely de-risked 2023 guidance provided, says the firm.