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Wedbush Morgan Reiterates a 'Buy' on Taleo (TLEO) After Meeting with CFO

June 11, 2009 9:57 AM EDT
TLEO Hot Sheet
Rating Summary:
    2 Buy, 14 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Wedbush Morgan reiterates a 'Buy' on Taleo Corporation (Nasdaq: TLEO), price target increased from $17 to $21.

Wedbush analyst says, "Yesterday we hosted a Management Access Call with Taleo CFO Katy Murray. On the call, Ms. Murray stressed that despite the challenging economic environment companies are still hiring and looking for efficient ways to deal with natural attrition. Taleo continues to experience high dollar renewal rates of 95% (well over 100% if up-sells are included) driven by the stickiness of the applications they provide. We recommend investors BUY Taleo shares as we believe Taleo management can focus all of their energy on delivering against new 2009 operating targets now that the services revenue accounting restatement is behind the company. Additionally, we believe Taleo is well positioned for strong cash flow growth in 2009. Ms. Murray sees combined Human Capital Management (HCM) industry growth rates over 20% in 2010, if the environment improves."

To see more analyst ratings on TLEO Click Here.

Taleo Corporation is a provider on-demand talent management software solutions. The Company offers recruiting, performance management, internal mobility and other software solutions.

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