Canaccord Genuity Maintains a 'Hold' on Ultimate Software (ULTI); Solid Results, But Valuation Too High
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Price: $7.20 --0%
Rating Summary:
15 Buy, 17 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
Rating Summary:
15 Buy, 17 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
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Canaccord Genuity maintains a 'Hold' on Ultimate Software (NASDAQ: ULTI) price target of $60.00.
Analyst, Richard Davis, said, "We have no qualms with Ultimate’s recent or prospective execution. We are, however, exercising that now rarely used by the sell-side function known as valuation assessment. On that basis, ULTI shares are valued at the high end of their historic range. In an era of 20x revenue IPOs, our valuation-based caution could be quaint and wrong. However, part of our job is to assess absolute and relative valuation. On that basis, ULTI is priced sufficiently high that should the stock market ever correct, something spook investors about HR, or even a modestly askew quarterly line item arise, it could produce a 15%+ correction on the stock. At that point, in all likelihood, we would reconsider our HOLD rating."
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 $67.98 yesterday.
Analyst, Richard Davis, said, "We have no qualms with Ultimate’s recent or prospective execution. We are, however, exercising that now rarely used by the sell-side function known as valuation assessment. On that basis, ULTI shares are valued at the high end of their historic range. In an era of 20x revenue IPOs, our valuation-based caution could be quaint and wrong. However, part of our job is to assess absolute and relative valuation. On that basis, ULTI is priced sufficiently high that should the stock market ever correct, something spook investors about HR, or even a modestly askew quarterly line item arise, it could produce a 15%+ correction on the stock. At that point, in all likelihood, we would reconsider our HOLD rating."
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 $67.98 yesterday.
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