Paylocity Holding Corp
PCTY: XNAS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$971.00 | Rbbvyl | Jmthtxhvt |
Paylocity Earnings: Interest Income Upside Is the Cherry on Top of an Impressive Growth Trajectory
Narrow-moat Paylocity remains on track to report impressive growth in fiscal 2023 following its solid third-quarter result. Top-line growth and profitability came in marginally ahead of our forecasts due to a sharper-than-expected increase in ultra-high margin interest income. While we have revised our near-term assumptions upwards, our longer-term forecasts and valuation remain intact. At current prices, Paylocity shares are trading at an attractive 12% discount to our unchanged $210 fair value estimate.