Wells Fargo Downgrades SuccessFactors (SFSF) to Market Perform; To Be Acquired By SAP

Wells Fargo downgraded SuccessFactors (NASDAQ: SFSF) from Outperform to Market Perform with a price target of $40.00.

Wells analyst says, "SAP announced a definitive agreement to acquire SuccessFactors for $40 per share in cash--$3.4B which represents 7.9x our 2012 revenue estimate. The stock is trading in line with SAP's offer and based on our belief that the deal will close, we are raising our valuation to $40, in line with SAP's offer, and are downgrading our rating on the shares to Market Perform...We believe that there are unlikely to be other serious bidders at this valuation, which would indicate to us that a bidding war is unlikely and we expect the deal to close by Q1 2012."

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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