Wedbush Securities Raises Price Target On The Ultimate Software Group On Positive Employment Trends

In a report published Wednesday, Wedbush Securities analyst Steve Koenig reiterated a Neutral rating on

, and raised the price target from $139.00 to $162.00. In the report, Wedbush Securities noted, “We view 4Q employment trends in the U.S. as an incremental positive for ULTI. ULTI revenue variability relative to near-term guidance is small, due to the company's ratable revenue multiple, but ULTI shares often react to small variations. In our experience, customer hiring in the quarter is often the most important factor in driving upside or downside in ULTI's results. Our analysis shows a meaningful correlation (+60%) between Q/Q U.S. non-farm employment levels and ULTI's revenue variance relative to guidance.” The Ultimate Software Group closed on Tuesday at $148.82.