KeyBanc Raises Their Price Target on Taleo Corp. (TLEO) to $24

June 20, 2008 8:30 AM EDT

KeyBanc raises their price target on Taleo Corp. (NASDAQ: TLEO) from $23 to $24 and maintains their Buy rating.

The firm said, "We are revising our Taleo estimates to incorporate the acquisition of Vurv, which is expected to close on July 1. The Company's analyst event on Wednesday contained no major surprises, with guidance for accretion from Vurv in line with our expectations. We have conducted checks with Vurv customers and industry sources in the past few weeks that have given us additional insight into TLEO's acquisition of Vurv. We believe the pending acquisition will make TLEO the leader in the e-recruiting space, jump start its attempt to broaden its talent management offerings, and help TLEO's close rates and product pricing. On the negative side, the acquisition could distract the Company from the key task of acquiring new customers and result in significant customer conversion costs."

The firm also raises their EPS estimates by $0.01 and $0.12 in 2008 and 2009, to reflect the addition of Vurv revenue and cost streams and the competitive benefit to TLEO's enterprise business.

Taleo Corporation is a global provider of talent management software solutions.

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