UBS: Fast Take: Business Services Software "Claims FW 6/6 MISS—229kA/220..."

研报英文原文证据摘录

UBS: Fast Take: Business Services Software "Claims FW 6/6 MISS—229kA/220..."

Valuation Method and Risk Statement

Investing in the technology sector entails above-average risk given low sales visibility, rapid

pace of innovation and technological change, intense competition, frequent M&A, and low

barriers to entry in many markets.

PAYC - Paycom, price target based on 2028E EV/Sales. Risks include pace of macro,

competition [incumbent SaaS], growth initiative traction, and potential float income

contraction. Growth would be curtailed by a slowdown in employment given Paycom’s

employee-based PEPM pricing model and the general HCM market’s exposure to

macroeconomic conditions. Additionally, larger HCM providers could become more

competitive down market and constrain Paycom’s growth.

EFOR - PT is based on 2027E EPS. We view the multiple as fair given macro + geopolitical

uncertainty potentially fuel further downward estimate revisions. This is in line with our view

on RHI—also offers temporary help and consulting services—which we also value late cycle.

Our price target is based on 1-year multiple on our FY27 estimates, rolled forward by Cost of

Equity to derive our 12-month price target. Risks to our Sell rating and PT include:

sustainability of low unemployment claims, or broad-based multiple expansion within

staffers.

RHI - Price target is based on a multiple of 2027E EPS. Multiple is fair, in our view, as macro

uncertainty potentially fuels even further downward consensus estimate revisions coupled

with risks of staffing disintermediation at low end. Risks: Protiviti strength/public sector

tailwind, improving macro environment. Our 1-year multiple is based on our FY27 estimates,

rolled forward by Cost of Equity to derive our 12-month price target.