10:20 AM EDT, 05/02/2024 (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:

PAYC delivered strong performance, exceeding expectations across key metrics; Q1 revenues were $500M (+11% Y/Y) compared to the consensus of $496M, while adj-EPS came in at $2.59, a $0.12 beat, due to better-than-expected adj-EBITDA results. PAYC posted adj-EBITDA of $230M vs. $221M last year, representing a margin of 46%, as a result of higher revenues and better expense control. Growth in Q1 sales was driven by an 11% rise in recurring revenue, accounting for 98% of total sales. Our 12-month target of $220 (from $265), 24.7x our '25 EPS view, is in line with peers and supported by PAYC's recurring and immensely profitable solutions. Despite soft Q2 guidance, our outlook remains positive given the growth we anticipate against a challenging macroeconomic backdrop in the near term, as well as longer-term tailwinds (move upmarket to larger clients, international penetration, and BETI adoption). We keep our '24 EPS view at $7.83 and '25's at $8.90. We see revenue of $1.8B (+11%) in '24 and $2.1B (+12%) in '25.