Dougherty & Co Downgrades Callidus Software (CALD) to Sell
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Dougherty & Co downgraded Callidus Software (NASDAQ: CALD) from Neutral to Sell with a price target of $15. Analyst Robert Mattson said decelerating organic growth and share loss isn't reflected in Current valuations.
"With organic growth decelerating and the company starting to lose market share, we believe the current valuation does not adequately contemplate the lower underlying organic growth profile of Callidus," said Mattson.
The analyst added, "Given slowing growth and our belief that Xactly is gaining share, we do not believe the current valuation adequately contemplates the lower underlying organic growth profile of Callidus. While we are comfortable with the space and end markets, the uncertainty in the company's growth profile and prospect of shrinking market share does not align with a valuation that is representative of a faster growing company. As such, we are downgrading our rating from Neutral to Sell with a $15 price target, representing under 5x P/S."
Shares of Callidus Software closed at $18.88 yesterday.
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