UPDATE: Piper Jaffray Reiterates Overweight Rating, Raises PT on Cornerstone OnDemand

In a report published Wednesday, Piper Jaffray & Co. reiterated its Overweight rating on Cornerstone OnDemand CSOD, and raised its price target from $29.00 to $31.00. Piper Jaffray noted, “We hosted CSOD Co-Founder and CFO Perry Wallack in investor meetings and conducted a round of channel checks. Key takeaways: 1) the market is big and healthy, with CSOD standing at 9.4M deployed seats out of a 400M global seat opportunity; 2) CSOD clearly enjoys a current tailwind with both SAP and ORCL customers, as those vendors are working on integration rather than innovation and don't have an integrated suite to sell; 3) checks suggest bookings linearity improved in Q2 and Q3, and while we model revenue deceleration in 2013, we see upside with a long shot opportunity for growth acceleration. One area of minor caution is that service revenue is becoming less predictable near-term; but if it were to drive adverse Q3 revenue optics, we would still expect to see underlying strength reflected in bookings and forward revenue guidance. Reiterate OW, raising target to $31.” Cornerstone OnDemand closed on Tuesday at $26.73.