Oppenheimer Assigns Perform On Shares Of The Ultimate Software Group

In a research report issued yesterday, Oppenheimer analyst Brian Schwartz assigned a Perform rating on The Ultimate Software Group (NASDAQ:ULTI). No price target was provided.

Schwartz observed, “Ultimate reported very solid 3Q results across its operating segments. The strong report from Ultimate is another data point (similar to our recent suppliers survey) revealing healthy demand for HCM applications. On balance, the 2015 guidance was below our expectations because of non-recurring events (ending maintenance contributions plus accelerating strategic group investments). Bottom Line: We view Ultimate as an established franchise that is very well run and generates consistent upper echelon industry growth rates and profitability margins. Our Perform rating on ULTI shares is on valuation, but we also have tiny concerns that core product refreshes coming in 2015 from Ultimate’s larger competitors (ADP & Ceridian) may create headline noise in the near term, and possibly slow the pace of mid-market share shifts over the intermediate term.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Brian Schwartz has a total average return of 12.1% and a 70.4% success rate. Schwartz has a average return when recommending ULTI, and is ranked #589 out of 3350 analysts.

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