BofA/Merrill upgraded Paylocity two notches to Buy from Underperform and raised its price target to $40 following the Q2 beat and guidance. The firm's analyst believes core growth has bottomed at 25% year-over-year and can accelerate in FY18 driven by improving sales productivity, a return to historical broker channel referral rates, and higher new module attach rates. The analyst valuation has compressed and EBITDA margins have improved, providing visibility into stronger leverage as sales and growth pick up in FY18.

Paylocity announces new innovative features aimed at transforming talent acquisition, employee engagement, and retention for the next generation of workers. As Gen Z surpasses Boomers in the workforce this year, swelling to more than 17.1M employees, companies are recognizing the need for customized solutions that address this generation's distinct needs and preferences. Job seekers can now easily apply for jobs by simply scanning QR codes or texting with the new text-scan feature, making the application process fast and intuitive even while on the go. For recruiters, this new feature provides key metrics on engagement, visits, applications, rates, and hire data. Another new feature gives applicants the ability to have real-time conversations with potential employers through two-way texting, providing quick and direct communication for instant interactions with recruiters. Paylocity also empowers candidates to share their preferred name, ask optional identity questions, or mask information that may promote bias in the hiring process, promoting inclusivity while reducing bias for candidates. Paylocity's seamless integration with LinkedIn, ZipRecruiter, and Indeed, allows candidates to directly apply for multiple jobs without leaving the job boards. New integrations with Gmail and Outlook calendars provide candidates hassle-free interview scheduling. Recruiters can easily send calendar invites with meeting links and documents such as resumes and interview guides. Two-way synchronization makes it simple to update or cancel an event.