Canaccord Genuity Maintains a 'Hold' on Ultimate Software (ULTI); Another Good Quarter, But Shares Expensiver
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Price: $7.20 --0%
Rating Summary:
15 Buy, 17 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 4 | New: 53
Rating Summary:
15 Buy, 17 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 4 | New: 53
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Canaccord Genuity maintains a 'Hold' on Ultimate Software (NASDAQ: ULTI) price target raised from $60 to $65.
Analyst, Richard Davis, said, "ULTI shares have underperformed NASDAQ year-to-date (8% versus 14%); we believe this is because the stock’s valuation got to a multiple of 5.5x forward EV/revenues, a level that historically put a cap on the share price. This observation was the basis of our downgrade to Hold late last year. However, we would note that our intransigence on opinion is weakening with the apparent “new era” of valuation for the fastest growing software stocks. Indeed, we can make the argument that the 1990s 1-4x revenue multiple range should be 2-3x higher simply by virtue of elongated subscription revenue recognition. We are not quite ready to make that sector/market call at this time – so, for the time being, we will keep strongly performing."
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 $70.17 yesterday.
Analyst, Richard Davis, said, "ULTI shares have underperformed NASDAQ year-to-date (8% versus 14%); we believe this is because the stock’s valuation got to a multiple of 5.5x forward EV/revenues, a level that historically put a cap on the share price. This observation was the basis of our downgrade to Hold late last year. However, we would note that our intransigence on opinion is weakening with the apparent “new era” of valuation for the fastest growing software stocks. Indeed, we can make the argument that the 1990s 1-4x revenue multiple range should be 2-3x higher simply by virtue of elongated subscription revenue recognition. We are not quite ready to make that sector/market call at this time – so, for the time being, we will keep strongly performing."
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 $70.17 yesterday.
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