) to outperform from market perform.
Analyst William Zinsmeister said the company reported solid third quarter results, and its top-line upside confirms his recent channel checks and assumptions about the positive macro tailwinds. He says he had become incrementally more positive on Ultimate Software throughout this fall, particularly around earlier risks that he thinks are now diminished. He tweaked his 41 cents 2006 earnings per share estimate to 42 cents, and his 76 cents 2007 estimate to 77 cents. Using his new 2006 earnings per share estimate with his same sum-of-the-parts valuation methodology, he set a $21 price target.