Jefferies lowered the firm’s price target on Paylocity to $11 from $14 and keeps a Hold rating on the shares. The analyst tells investors to “tread carefully” in the payroll sector, saying market dynamics and macro factors are likely to lead to growth slowing further. The firm believes 2025 and 20266 consensus estimates for the group remain too high and it expects the next wave of guidance to fall short of consensus numbers. While the stocks have been punished, the group still trades at 30-times estimated 2025 free cash flow on average, according to Jefferies, which reduced estimates and price targets for the SMID-cap payroll players.
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