February 4, 2019 / 6:58 PM / 6 months ago

BUZZ-Ultimate Software: Trades above offer price, analysts split on rival bid chances

(Updates prices, adds comment)

** HR software maker Ultimate Software jumps 19.6 pct to $332.36 vs buyout offer of $331.50/share from an investor group led by Hellman & Friedman

** Stock has traded above the offer price the entire day so far, between $331.70 and record high price of $365.86

** $11 bln all-cash deal includes a 50-day “go-shop” period

** Jefferies says a rival offer is possible; MUFG Securities Americas does not expect a rival bid, but says one is more likely from a PE bidder rather than a company

** Roth Capital says a rival offer is unlikely given deal value, unanimous ULTI board and management support; ULTI executive team will continue to operate post-closing

** Median PT of 21 analysts covering ULTI is $313.50, up from $310 3 months back -Refinitiv data; mean rating is “buy”

** ULTI peers also rise: Paycom Software up 3.4 pct, Paylocity up 6.7 pct, Workday up 0.4 pct, hits record high

** Since 2018 through Friday, ULTI has risen 27.3 pct; Paycom has surged ~88 pct, Workday ~83 pct and Paylocity ~55 pct (Reporting by Savio D’Souza)

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