Needham & Company Remains Bullish on Cornerstone OnDemand (CSOD) After Meeting with Management

Needham & Company reiterated a Strong Buy rating and $45.00 price target on Cornerstone OnDemand (NASDAQ: CSOD) after meeting with management. Management remains enthusiastic about its Analytics opportunity with its October 2014 acquisition of Evolv. Cornerstone is also currently undertaking several initiatives to build in efficiencies to improve its overall operating structure.

Analyst Scott Berg commented, "We had the opportunity to meet with CSOD management this week at the company's HQ. We came away from the meetings more comfortable with CSOD's overall ability to execute in 2H15 and into FY16, both on the sales side and operationally. We believe CSOD continues to execute its sales strategy much better Y/Y, and when coupled with renewed operational focus we believe it has multiple opportunities to outperform on both the top and bottom lines in FY16. We believe incremental sales upside can come from a larger number of Big Deals, new analytic sales, a rewritten SMB solution, and a platform that can improve win rates with its core suite. We believe bottom line improvements could push the company over the profitability threshold in FY16 for the first time. If accurate, we believe this thesis should remain our top pick into FY16."

For an analyst ratings summary and ratings history on Cornerstone OnDemand click here. For more ratings news on Cornerstone OnDemand click here.

Shares of Cornerstone OnDemand closed at $35.67 yesterday.

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