Paycom upgraded to Buy from Hold at TD Cowen

TD Cowen upgraded Paycom (PAYC) to Buy from Hold with a price target of $258, up from $246. The firm cites positive indications from its 2025 human capital management survey and the company’s commentary at a recent conference on its near-term capex expectations for the upgrade. TD now has increasing conviction on Paycom sustaining double-digit growth and “materially” expanding free cash flow margins over the medium term. This should position the company to post upside to consensus estimates, warranting valuation multiple expansion, the analyst tells investors in a research note.