Paylocity Holding Corp (PCTY) stock surged 5.56% in pre-market trading on Friday, February 7, 2025, following the company's impressive fiscal second quarter 2025 earnings report. The key highlights of the report:
- Total revenue grew 16% year-over-year to $377 million, driven by a 17% increase in recurring and other revenue.
- Adjusted EBITDA of $126.2 million (33.5% margin) exceeded guidance by $8.2 million.
- The company raised its fiscal 2025 total revenue guidance to a range of $1.558 billion to $1.568 billion.
The strong results and raised outlook were widely cheered by analysts, with several firms raising their price targets on PCTY stock. Notable target increases include:
- BMO Capital raised its target to $250 from $240
- Raymond James raised its target to $265 from $215
- Truist Securities raised its target to $240 from $210
- UBS raised its target to $220 from $211
Analysts highlighted Paylocity's robust performance, new product launches, and expansion into the office of the CFO as key drivers behind the impressive results. The company's effective broker channel strategy and growing adoption of its AI Assistant chatbot were also positively noted.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.