Analysts’ Top Technology Picks: PAYC, HUBS

By Austin Angelo

There’s a lot to be optimistic about in the Technology sector as 2 analysts just weighed in on Paycom (NYSE: PAYC) and HubSpot (NYSE: HUBS) with bullish sentiments.

Paycom (NYSE: PAYC)

In a report released today, Brian Schwartz from Oppenheimer initiated coverage with a Buy rating on Paycom (NYSE: PAYC) and a price target of $55. The company’s shares opened today at $45.05.

Schwartz wrote:

“We launch coverage of Paycom with an Outperform rating and $55 price target. We are confident in Paycom’s multi-year growth and cash flow potential because of an attractive value proposition and weak legacy competition in its large and established HCM markets. Bottom Line: We see the recent reset in PAYC’s valuation (subsequent to last quarter’s reported results) as creating an attractive entry point for investors to own a fast-growing and highly profitable SaaS category leader in payroll and HCM management for midmarket/SMBs.”

According to, Schwartz is a top 25 analyst with an average return of 18.1% and a 64.3% success rate. Schwartz covers the Technology sector, focusing on stocks such as Palo Alto Networks, Callidus Software, and Ultimate Software.

Currently, the analyst consensus on Paycom is Strong Buy and the average price target is $55.14, representing a 22.4% upside.

In a report issued on November 16, Barclays also reiterated a Buy rating on the stock with a $55 price target.
HubSpot (NYSE: HUBS)

HubSpot (NYSE: HUBS) received a Buy rating and a $70 price target from Oppenheimer analyst Koji Ikeda today. The company’s shares opened today at $56, close to its 52-week high of $60.11.

Ikeda observed:

“We are initiating coverage of HubSpot with an Outperform rating and $70 PT. HubSpot is a pure-play SaaS vendor of marketing and sales applications that is gaining share in a large, but lightly penetrated, mid-market opportunity. We believe there is a big opportunity for HubSpot to take an increasing share of future mid-market technology spend, as these organizations turn to next-gen demand generation technologies, like HubSpot’s, to better reach and engage a dynamically evolving and global end- consumer.”

HubSpot has an analyst consensus of Strong Buy, with a price target consensus of $66.71.