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Research Alert: CFRA Raises Opinion On Shares Of Dayforce Inc To Hold From Sell
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Research Alert: CFRA Raises Opinion On Shares Of Dayforce Inc To Hold From Sell
Aug 18, 2025 7:42 AM

10:25 AM EDT, 08/18/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Shares of DAY are up 25%+ following a Bloomberg report that private equity firm Thoma Bravo is in advanced talks to acquire the human resources software provider, with a deal potentially announced within weeks. We have consistently argued that DAY lacks meaningful growth catalysts in the highly competitive human capital management market, where it faces intense pressure from established players (ADP, Workday, and Paychex). Given the heightened volatility and uncertainty that acquisition speculation creates, we upgrade our rating to Hold from Sell as the stock will likely experience significant price swings. However, we note that these discussions could still collapse or be delayed, as Bloomberg reported that talks remain fluid, and if the deal fails to materialize, DAY would likely revert to trading on its challenged fundamentals in an increasingly crowded market. Our target of $70 (up $24) values shares at a P/E of 28.3x our 2026 EPS view, vs. DAY's three-year historical forward P/E average of 50.6x.

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