Dayforce: Native Platform To Drive Deal Growth, Says Bullish Analyst

Dayforce Inc DAY offers a natively built platform that could drive more deals through human capital management partners, a Needham analyst says.

The Dayforce Analyst: Analyst Scott Berg maintained a Buy rating and price target of $95.

The Dayforce Thesis: The company typically wins in competitive bids due to the high ease of use of its naively built full suite, which feels like "a single solution," Berg said in the note.

Dayforce, which recently did business as Ceridian before rebranding, provides cloud-based tools that help businesses manage HR, payroll, workforce management, and talent management.

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"Our partner believes Dayforce performs best in the 500+ employee range with particular strength in 500-1,000 employee firms but does work with some larger companies including one in the Fortune 10," he wrote.

New module interest is likely to drive realized PEPM (per employee per month) growth, the analyst stated.

"Overall, the commentary supports our view on how DF should be able to grow DF recurring revenues in at least the low double-digit range for multiple years," he added.

Price Action: Shares of Dayforce had risen by 0.31% to $55.31 at the time of publication on Monday.

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