02:15 PM EDT, 08/18/2025 (MT Newswires) -- Bloomberg reported Thoma Bravo is in talks to acquire Dayforce ( DAY ). Deutsche Bank believes the news highlights the strategic value of Dayforce's ( DAY ) platform, especially its product portfolio and expects the cloud payroll names to trade up on this news as a potential takeout suggests solid asset value within the sector and provide some valuation support.

"We note, however, Thoma Bravo's potential interest in Dayforce ( DAY ) vs. other cloud payroll peers might be an indication of Dayforce's ( DAY ) market positioning or possibly greater comfort with Dayforce's ( DAY ) target market (mid-market/enterprise) vs those targeting more the SMB space, which has been perceived as increasingly competitive," writes Deutsche Bank. "More broadly, we believe the news could be positive for application software, as it underscores the value and durability of software assets, even when concerns abound around the impact of genAI on employment trends and software business models."

Dayforce ( DAY ) trades at 4.2x CY26E revenue vs peers Paycom at 5.4x and Paylocity at 5.3x and compares with Paycor (acquired by Paychex) takeout multiple of 5.2x out year revenue. "Assuming a takeout of 5.0x CY26E revenue, it would imply ~20% upside to Dayforce's ( DAY ) current share price or ~US$63," Deutsche Bank notes.

Deutsche Bank has a Hold rating and US$60 target on Dayforce ( DAY ).

Price: 92.89, Change: +19.88, Percent Change: +27.23