Cornerstone OnDemand Price Target Boosted 20% By UBS

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Cornerstone OnDemand, Inc. CSOD reported beat results for Q1, with both revenue and billings growth rebounding to more than 30 percent year on year, following a decline to the 20s in 2H15.

UBS’ Brent Thill maintains a Buy rating on the company, while raising the price target from $40 to $50.

“The majority of data points year-to-date indicate that fundamentals should continue to improve in 2016, especially in F2H,” Thill mentioned.

Inflection In 2H

Thill mentioned that UBS’ checks “confirm CSOD stands far above others in its ability to serve large, complex global organizations with sophisticated Learning management needs; this is further evidenced by the four eight-figure deals signed in last two quarters.”

Related Link: Goldman Sachs Initiates Coverage On Cornerstone OnDemand At Buy, Announces $43.00 PT

The analyst believes that mid-market sales execution is well positioned to inflect in 2H, following the missteps in 2014–2015, with the team having been right-sized and new leaders having been appointed.

The Positives

In addition, Thill pointed out that “marketing re-energized in late '15/early '16, which have already improved deal pipeline and should convert to contracts in 2H.”

The analyst also noted the recruiting was the fastest growing product at present, having reached feature parity with best in class competitors.

Thill believes medium-term expectations could prove to be conservative.

The FY18 revenue and EPS estimates have been raising.

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Posted In: Analyst ColorLong IdeasPrice TargetAnalyst RatingsTechTrading IdeasBrent ThillUBS
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