Goldman Sachs Downgrades SuccessFactors (SFSF) to Neutral; SAP to Acquire SFSF for $3.4 bn
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Price: $39.99 --0%
Rating Summary:
6 Buy, 11 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
6 Buy, 11 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Goldman Sachs downgraded SuccessFactors (NASDAQ: SFSF) from Buy to Neutral with a price target raised from $33 to $36.
Goldman analyst says, "SAP to acquire SuccessFactors for $3.4 bn. On Saturday, SAP announced that it has signed a definitive agreement to acquire SuccessFactors for $40 per share, a 52% premium to Friday’s close. The purchase price represents a value of $3.4 bn. SAP expects the deal to close in 1Q2012. Today, the shares are up 51% intraday to around $40, above our price target. We are downgrading SuccessFactors (SFSF) to Neutral from Buy and removing it from the Americas Conviction List. We resumed coverage on SFSF on Friday, December 2. Over 12 months SFSF is up -13.7% vs. the Russell 3000 1.3%."
"Implications for the SaaS sector. While we continue to believe that the
SaaS space is unlikely to be consolidated quickly given the early nature of
the trend and the lack of clear category leadership in many areas, we do
see the potential for other larger software firms to bolster their capabilities
in certain areas that are complementary to core businesses. In the
immediate term, we believe ancillary talent management venders'
fundamentals (i.e., Cornerstone OnDemand (Nasdaq: CSOD), Teleo (Nasdaq: TLEO), Kenexa (Nasdaq: KNXA), Ultimate Software (Nasdaq: ULTI) and private companies such as Workday) may benefit to a degree during the proposed transition of ownership of SuccessFactors."
For an analyst ratings summary and ratings history on SuccessFactors click here. For more ratings news on SuccessFactors click here.
Shares of SuccessFactors closed at $27.27 yesterday.
Goldman analyst says, "SAP to acquire SuccessFactors for $3.4 bn. On Saturday, SAP announced that it has signed a definitive agreement to acquire SuccessFactors for $40 per share, a 52% premium to Friday’s close. The purchase price represents a value of $3.4 bn. SAP expects the deal to close in 1Q2012. Today, the shares are up 51% intraday to around $40, above our price target. We are downgrading SuccessFactors (SFSF) to Neutral from Buy and removing it from the Americas Conviction List. We resumed coverage on SFSF on Friday, December 2. Over 12 months SFSF is up -13.7% vs. the Russell 3000 1.3%."
"Implications for the SaaS sector. While we continue to believe that the
SaaS space is unlikely to be consolidated quickly given the early nature of
the trend and the lack of clear category leadership in many areas, we do
see the potential for other larger software firms to bolster their capabilities
in certain areas that are complementary to core businesses. In the
immediate term, we believe ancillary talent management venders'
fundamentals (i.e., Cornerstone OnDemand (Nasdaq: CSOD), Teleo (Nasdaq: TLEO), Kenexa (Nasdaq: KNXA), Ultimate Software (Nasdaq: ULTI) and private companies such as Workday) may benefit to a degree during the proposed transition of ownership of SuccessFactors."
For an analyst ratings summary and ratings history on SuccessFactors click here. For more ratings news on SuccessFactors click here.
Shares of SuccessFactors closed at $27.27 yesterday.
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