Goldman Sachs Upgrades Ultimate Software (ULTI) Two-Notches to Buy, Sees 32% Upside

Goldman Sachs upgraded Ultimate Software (NASDAQ: ULTI) two-notches from Sell to Buy and boosted its price target from $65 to $100, suggesting 32% upside. The firm said the company more leverage than they had previously thought.

The firm cited: "1) we now believe there's more inherent leverage as higher costs associated with payment services are depressing gross margins but offer significant earnings potential longer term, 2) we expect accelerating revenue growth in the back half of the year, partially driven by two large rollouts, and 3) we now are more
confident in sales capacity growth."

Goldman raised FY12 EPS from $0.33 to $0.38, FY13 from $0.54 to $0.65 and FY14 from $0.73 to $1.10.

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 $75.51 yesterday.

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