FBR Capital Maintains Current Rating on Taleo (TLEO); Feels Learn.com Acquisition Can Bump '11 EPS

September 2, 2010 3:56 PM EDT Send to a Friend
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Price: $45.98 --0%

Rating Summary:
    2 Buy, 14 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 9 | New: 27
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FBR Capital maintains a 'Market Perform rating on Taleo Corporation (Nasdaq: TLEO), price target $24.

FBR analyst says, "Last night, Taleo announced it will acquire privately held Learn.com for $125 million in cash. We think the acquisition makes strategic sense, as it extends Taleo’s HCM suite by adding learning management to existing capabilities (recruiting management, performance management, compensation management). We think the acquisition was a bit pricey...However, management believes there are fertile cross-sell opportunities, and that Learn.com’s growth profile can be improved when folded into Taleo’s sales infrastructure."

FBR analyst doesn't see much in work involved in the integration process and feels the acquisition can be accretive by $0.03 to $0.04 in 2011.

Shares of TLEO are down $0.16 (-0.59%) today, but the stock is up over 50% in the past 12 months.

To see all the upgrades/downgrades on shares of TLEO, visit our Analyst Ratings page.


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