Roth Capital Assigns Buy On The Ultimate Software Group, $180 PT


In a research report issued today, Roth Capital analyst Richard Baldry assigned a Buy rating on The Ultimate Software Group (NASDAQ:ULTI) with a price target of $180.00.

Baldry observed, “The company backed up its 2Q14 decision to sell directly rather than via a partnership in the “Strategic Market” by over doubling the sales headcount in the segment. We remain convinced that ULTI is currently offering the best balance between top and bottom line growth in the SaaS sector overall. Our 4Q14 EPS forecast is unchanged while our quarterly revenue forecasts are lowered roughly $2M or 2% to account for the completion of its legacy license revenue conversion (to SaaS) which eliminates future “upsell” into this base. Preliminary earnings guidance leaves our 2015 pro forma EPS forecast increased to $2.50 versus $2.40 prior. Should this initial revenue guidance to be viewed as sub-par pressuring shares disproportionately, we would aggressively add to positions.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Richard Baldry has a total average return of 9.6% and a 66.7% success rate. Baldry has a -9.1% average return when recommending ULTI, and is ranked #864 out of 3350 analysts.

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