Credit Suisse Resumes Callidus Software (CALD) at Outperform

September 19, 2016 6:50 AM EDT
Get Alerts CALD Hot Sheet
Price: $18.17 +0.22%

Rating Summary:
    12 Buy, 1 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 14 | Down: 19 | New: 11
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Credit Suisse resumes coverage on Callidus Software (NASDAQ: CALD) with a Outperform rating and a price target of $22.00.

Analyst Michael Nemeroff commented, "We reinstate coverage of CALD with an Outperform rating and maintain our $22 target price. Our revenue estimates for 2016 and 2017 of $205.0M (+18.4% yr/yr) and $240.3M (+17.2% yr/yr) are unchanged, but we lower our EPS ests to $0.27 and $0.35 from $0.28 and $0.37, respectively, to reflect dilution from the new primary shares the company sold. Including the over-allotment option, net proceeds from the transaction are $100.3M. We view CALD's recent secondary offering favorably because we believe the transaction: (1) provides more flexibility for the company to pursue strategic tuck-in technology acquisitions to further broaden and enhance its SEM / SPM product suites; and (2) improves CALD's liquidity and cash position to fund future R&D initiatives as well as sales & marketing investments, which we believe could support strong +30% on-demand revenue growth over the next few years, at least."

For an analyst ratings summary and ratings history on Callidus Software click here. For more ratings news on Callidus Software click here.

Shares of Callidus Software closed at $18.88 yesterday.

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