T. Rowe Price Opposes Dayforce Buyout, Citing Long-Term Growth Potential
T. Rowe Price, the largest investor in Dayforce (DAY), has rejected Thoma Bravo's $12.3 billion acquisition offer, arguing the HR software firm is undervalued. The asset manager will vote against the deal at the November 12 stockholders meeting, calling Dayforce "one of the software industry's standout success stories."
Market pessimism about the software sector overlooks Dayforce's fundamental strength, according to T. Rowe. The company is projected to achieve $1 billion in annual free cash FLOW within years—a target that justifies holding rather than selling at current valuations.
Analyst sentiment remains cautious. TipRanks data shows 1 Buy and 12 Hold ratings for DAY stock, with a $70 average price target implying just 1.46% upside from current levels.
