Nomura Securities Starts Taleo Corp (TLEO) at Buy, Sees 20% Upside

After the close Wednesday, Nomura Securities analyst Rick Sherlund initiated coverage on Taleo Corp (NASDAQ: TLEO) with a Buy rating and $44 price target, suggesting 19.5% upside.

Sherlund said, "Although the stock has bounced about 15% since SAP announced its intent to acquire SuccessFactors, we are positive on Taleo, as we expect a continued upside bias to earnings estimates given operating leverage, which we believe is underappreciated by the Street, and the potential cross-selling opportunities with existing clients that could expand revenues by 200%."

He also said he sees a significant ramp long term in operating margins from 14% currently as revenues grow to scale and Sales and Marketing costs normalize.

For an analyst ratings summary and ratings history on Taleo Corp click here. For more ratings news on Taleo Corp click here.

Shares of Taleo Corp closed at $36.46 yesterday.

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