Wunderlich Reiterates Buy on Ultimate Software

Wunderlich maintains its Buy rating on Ultimate Software Group ULTI as the company has the strongest fundamentals in SaaS HR and should stand to benefit from SuccessFactors acquisition and the wake it has created in the cloud space. Wunderlich says, “We believe this acquisition will heighten awareness of the value of the HR application space, to the benefit of the company that carries the only truly end-to-end SaaS HR solution: Ultimate Software. To close the gap to the valuation offered for SuccessFactors, Ultimate's shares would be valued at over $90 using its current revenue base. With Ultimate gaining traction in Fortune 500 accounts and with increased international functionality to roll out over the year ahead to bolster its competitive edge in this new space, record earnings and accelerating growth underscore its attractive investment characteristic.” ULTI closed at $64.65 per share on Friday.