UBS Upgrades Cornerstone OnDemand to Buy

Research analysts at UBS have upgraded their rating on Cornerstone OnDemand, Inc (CSOD) from Neutral to Buy and reiterated their price target at $60, suggesting 53 percent upside.


“CSOD stock is down 26% YTD and 36% from its 52-wk high ($61.85 intraday on 2/28). We think pressure is due to 2 reasons: (1) sector-wide retreat since Feb. for highmultiple, high-growth software names; and (2) another covering analyst lowering ests. to about the consensus mean. In contrast to the recent stock volatility, fundamentals appear unchanged other than for typical Q1 seasonality.” UBS said

“CSOD continues to have leading mindshare with HR buyers as a pure-play SaaS talent management vendor. We believe the recent downdraft creates attractive opportunity to own a top tier SaaS story with est. 2014 rev growth of 45%+ (nearly 2x SaaS median of 24%) for a very reasonable multiple.” it added

Shares of Cornerstone OnDemand, Inc (CSOD) closed at $39.31 on Thursday.

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