FBR Capital Reiterates Market Perform on Ultimate Software Group (ULTI) After Meeting with management
Get Alerts ULTI Hot Sheet
Rating Summary:
15 Buy, 17 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 11
Join SI Premium – FREE
FBR Capital reiterated a Market Perform rating and $205.00 price target on Ultimate Software (NASDAQ: ULTI) after meetings with management. the meetings largely focused on the company's longer-term growth opportunities, execution strategy, and financial targets. A key driver of ULTI's consistent, mid-20% recurring revenue growth has been increasing the per-employee per-month (PPM) fee it can generate. The current maximum PPM ULTI charges is $30, which has increased significantly from $5 when the subscription offering was first introduced.
Analyst Samad Samana commented, "Earlier this week, we held meetings with Ultimate Software's CFO Mitch Dauerman and investors. With the company having reported solid 3Q15 results on October 27, the meetings largely focused on the company's longer-term growth opportunities, execution strategy, and financial targets. While many topics were discussed, we found the following recurring themes worth highlighting: (1) expanding the per-employee revenue opportunity is a top priority; (2) healthy margins allow the flexibility to accelerate investments; and (3) increased sales capacity and partnerships are keeping the pipeline full. Overall, we walked away from the meetings with confidence that ULTI can deliver on the rare combination of accelerating organic revenue growth and expanding margins in 2016. We maintain our Market Perform rating and our $205 price target, which represents an 8x EV/ revenue multiple using our 2016 estimates."
For an analyst ratings summary and ratings history on Ultimate Software click here. For more ratings news on Ultimate Software click here.
Shares of Ultimate Software closed at $205.07 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Teleperformance (TEP:FP) (TLPFY) PT Lowered to EUR125 at RBC Capital, 'perceived risk profile makes it a no-fly zone for many investors'
- TD Cowen Starts Grindr (GRND) at Buy
- Hyundai Mobis Co Ltd. (012330:KS) PT Raised to KRW340,000 at HSBC
Create E-mail Alert Related Categories
Analyst CommentsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!