Paycom Software (PAYC): BMO Capital Highlights Contraction in Broader Software Multiples

Paycom Software, Inc. (NYSE:PAYC) is one of the Best Long-Term Tech Stocks to Buy According to Analysts. On January 15, BMO Capital reduced its price objective on the company’s stock to $175.00 from $190.00, while maintaining a “Market Perform” rating. The research firm highlighted the contraction in broader software multiples as the main reason for the reduction in price target.

The firm opines that the likelihood of further multiple compression is lower if Paycom Software, Inc. (NYSE:PAYC) can sustain double-digit recurring revenue growth excluding float.

Elsewhere, TD Cowen analyst Jared Levine reduced the firm’s price objective on Paycom Software, Inc. (NYSE:PAYC)’s stock to $184 from $200, while keeping a “Buy” rating. Notably, the firm updated its estimates to reflect the latest Fed Funds rate expectations and thoughts ahead of the Q4 2025 results.

In a separate release, Citi reduced its price objective on Paycom Software, Inc.’s (NYSE:PAYC) stock to $185 from $191, while keeping a “Neutral” rating, and adjusted its models in the application software group after meeting with company management.

Paycom Software, Inc. (NYSE:PAYC) offers a cloud-based human capital management (HCM) solution delivered as software-as-a-service for small to mid-sized companies.

While we acknowledge the potential of PAYC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.