Nomura Securities Maintains a 'Buy' on Cornerstone OnDemand (CSOD);

Nomura Securities maintains a 'Buy' on Cornerstone OnDemand (NASDAQ: CSOD) price target of $23.00.

Analyst, Rick Sherlund, said, "Cornerstone reported 4Q 11 billings of $38.4mn, 10% above our estimate of $35.0mn and up 58% y/y, all organic growth. In comparison, Taleo was up 18% y/y and we estimate SuccessFactors’ organic growth was well below its reported 63% y/y if we exclude the Plateau acquisition. Management guided for 2012 revenues of $112-114mn, representing 48%-51% growth y/y, 3% ahead of consensus of $110mn at the midpoint. With Cornerstone’s main rivals Taleo (Nasdaq: TLEO) and SuccessFactors (Nasdaq: SFSF) being acquired by Oracle (Nasdaq: ORCL) and SAP (NYSE: SAP), respectively, Cornerstone’s competitive environment is set to change dramatically in 2012. Cornerstone is increasing spend (particularly on Sales and Marketing) in 2012, and we anticipate continued strong billings growth. We expect to see the productivity of sales spend decrease slightly in early 2012 as new sales heads ramp-up, but this slowdown in productivity should be temporary. Our EPS estimates remain unchanged at -$0.25/$0.02/$0.16 for 2012/2013/2014 respectively."

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 $18.35 yesterday.

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