Paycom price target raised to $400 from $360 at Oppenheimer

Oppenheimer analyst Ray McDonough raised the firm’s price target on Paycom to $400 from $360 and keeps an Outperform rating on the shares. The firm notes Paycom delivered strong Q4 results, highlighted by recurring revenue growth of 30% and a record Q4 EBITDA margin of 44%. The Q4 upside flowed through to an above-2023 consensus guide, which indicates healthy demand for Paycom’s platform technologies despite a tough macro, Oppenheimer adds. The firm thinks Paycom remains one of the best compounding stories in software, and the business should profile a Rule of 70 again in 2023, which is best-in-SaaS-industry-class.