Wedbush analyst, Steve Koenig, reiterated his Neutral rating on shares of Ultimate Software (NASDAQ: ULTI). In the near-term, the analyst thinks ULTI’s strong fundamentals and momentum position its shares to benefit from an uptick in investor risk appetites. Consensus and guidance for 2Q looks relatively easy. However, the analyst thinks modest 2H deceleration and high multiples (84x EV/FCF on FY17E) will most likely lead to only average / in-line stock price performance relative to ULTI’s peer group over the next 12 months. Longer-term, the analyst thinks ULTI shares can post solid gains as the company sustains a 20%+ top line growth rate for several years.

No change to the price target of $203.00

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Shares of Ultimate Software closed at $220.66 yesterday.