Paycom selloff brings buying opportunity, says Piper Sandler

Piper Sandler analyst Arvind Ramnani says the recent pullback in Paycom Software shares presents a buying opportunity. The company’s algorithm remains intact as its underlying growth levers remain unchanged, including a cloud-based offering, significantly low total cost of ownership, expanding functionality, disciplined spend and a leadership position in an attractive market, the analyst tells investors in a research note. The firm sees upside to fiscal 2024 estimates and reiterates an Overweight rating on the shares with a $399 price target.