** Shares of Paycor HCM up 23.2% to $22.85 premarket on potential M&A news
** PYCR shares could open at highest levels since Oct 2013, if gains hold. ** Paychex in advanced talks to acquire smaller payroll processing rival PYCR, Bloomberg News reported on Sunday, citing people with knowledge ** A deal may be announced as soon as this week, said the people, adding nothing has been finalized and talks could still fall through, according to the report
** Cincinatti, Ohio-based PYCR's market value stood at ~$3.3 bln as of Fri, per LSEG data. Rochester, New York-based PAYX had market cap of ~$50 bln ** Shares of PAYX down 0.3% at $139.20 before the bell
** Potential deal would be a surprise, given client overlap and platform duplication, TD Cowen wrote in note, saying views PAYX as being opportunistic "evaluating an undervalued asset"
** TD Cowen has 'buy' rating on PYCR with $22 PT
** In 2024, PYCR shares lost 14%, while PAYX shares rose ~18%
(Lance Tupper is a Reuters market analyst. The views expressed are his own) ((lance.tupper@tr.com 1-646-279-6380))
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.