UPDATE - Nomura Securities Downgraded Taleo Corp (TLEO) to Neutral; Acquired by Oracle (ORCL)
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Price: $45.98 --0%
Rating Summary:
2 Buy, 12 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
2 Buy, 12 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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UPDATE - Nomura Securities downgraded Taleo Corp (NASDAQ: TLEO) from Buy to Neutral.
Analyst, Rick Sherlund, said, "We are downgrading Taleo given the announcement that Oracle (Nasdaq: ORCL) intends to acquire Taleo for $46 per share. We have raised our Taleo Target Price to $46 from $44, as we do not expect a higher bidder to emerge and believe that there will be no impediment to the transaction closing. The transaction is expected to close by mid-CY2012. The purchase price represents a NTM revenue multiple of 5.0x, above the average multiple in software transactions of 4.1x, but below the average revenue multiple paid in precedent SaaS transactions of 6.1x. Taleo also released results for its December quarter. The company reported billings of $101mn, a bit better than the Street, which we believe was expecting around $100mn. Non-GAAP revenues of $86.3mn were about in-line with Street estimates of $86.6mn. EPS of $0.26 was above the Street estimate of $0.23."
To see more ratings on TLEO, Click Here
Analyst, Rick Sherlund, said, "We are downgrading Taleo given the announcement that Oracle (Nasdaq: ORCL) intends to acquire Taleo for $46 per share. We have raised our Taleo Target Price to $46 from $44, as we do not expect a higher bidder to emerge and believe that there will be no impediment to the transaction closing. The transaction is expected to close by mid-CY2012. The purchase price represents a NTM revenue multiple of 5.0x, above the average multiple in software transactions of 4.1x, but below the average revenue multiple paid in precedent SaaS transactions of 6.1x. Taleo also released results for its December quarter. The company reported billings of $101mn, a bit better than the Street, which we believe was expecting around $100mn. Non-GAAP revenues of $86.3mn were about in-line with Street estimates of $86.6mn. EPS of $0.26 was above the Street estimate of $0.23."
To see more ratings on TLEO, Click Here
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