Paylocity downgraded to Hold from Buy at Jefferies

Jefferies analyst Samad Samana downgraded Paylocity to Hold from Buy with a price target of $180, down from $240. At peak yields and full employment, the analyst believes the human resources and payroll group will be more challenged to drive growth at historical levels in 2024. While the underperformance in 2023 and valuation compression somewhat reflects this, the firm sees few catalysts for meaningful upside to fundamentals in 2024, the analyst tells investors in a research note. To reflect its caution on the payroll complex, Jefferies downgraded three names.