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Research Alert: CFRA Maintains Hold Rating On Shares Of Ceridian Hcm Holding Inc.

05/10/2021 03:08

07:05 AM EDT, 05/10/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target of $99 (up $3) values shares at an EV/Sales of 13.6x our '21 view, a discount to Human Capital Management (HCM) peers of 17x, attributed to its below-average profitability and higher debt levels. We trim '21's EPS view to $0.38 from $0.48 and '22's to $0.55 from $0.63 to reflect a step-up in interest expense (~$15M) from its recently issued convertible notes. CDAY prints Q1 adj-EPS of $0.09 vs $0.15, clearing consensus by $0.01. CDAY delivered revenues of $235M (up 5%) compared to consensus of $223M -- Dayforce recurring revenues came in at $145M (up 13%) and drove the beat. Even when removing large deals that slipped out of 2020, first-quarter signings accelerated and led to an above-consensus revision to FY 21 revenues ($1B+ vs. $928M). We suspect the bounce-back in client activity is due to recent c-suite hires and increased uptake of ancillary products (i.e., Dayforce Wallet). A continuation of recent sales momentum and retention performance is needed to get more constructive on shares.