Paycor HCM price target lowered to $15 from $19 at Mizuho

Mizuho lowered the firm’s price target on Paycor HCM to $15 from $19 and keeps a Neutral rating on the shares. The cloud payroll sector has been underperforming due to “lackluster results” over the past several quarters, the analyst tells investors in a research note. The firm says that given the continued weak macro data pointing to decelerating payroll growth, coupled with company-specific challenges, it expects no significant recovery over the near-term. However, the valuation multiple for the payroll group has compressed from a 70% premium to software-as-a-service in 2022 to 20% discount now, Mizuho adds.