The firm said it lowered its rating on the company, which provides cloud-based human capital management software solutions, as it believes Paycom's valuation gap with its peers has closed.
Barclays did have some positive comments regarding Paycom, saying it believes the company's growth story is intact, and that "investors better appreciate the quality of this company."STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
"Paycom has continued to outgrow competitors in the payroll/HCM space...we think Paycom is well positioned to continue to take market share and drive growth through a combination of new business, upselling, and attracting larger enterprise customers," Barclays said.