Despite this, they are waiting for more assurance on sustaining sales momentum and the medium-term outlook for capital expenditures. The new price target is based on a 29x EV/FCF estimate for the calendar year 2026, reflecting the analysts' expectations for Paycom's future growth and financial performance. In other recent news, Paycom Software has reported a notable first-quarter performance, exceeding revenue forecasts by $5.5 million and margin estimates by $15.7 million. The company's recurring revenue surpassed $500 million for the first time, marking a significant milestone. Analysts from KeyBanc, Stifel, TD Cowen, and Piper Sandler have responded by raising their price targets for Paycom. KeyBanc increased its target to $285, citing improved sales strategies and customer retention, while Stifel adjusted its target to $215, acknowledging a modest top-line beat.