Janney Capital analyst Sasa Zorovic this morning cut his rating on the HR software provider SuccessFactors (SFSF) to Neutral from Buy, noting that the stock at yesterday’s close of $25.11 was under a dollar below his $26 target price.
“While we are positive on the company’s fundamentals with its strong growth and improving margins,” he writes in a research note, “we regard the current valuation as balancing out risk/reward around current levels – and expect other names in our sector coverage to have greater shorter-term price appreciation.”
His top pick in the group is Kenexa (KNXA); today he boosted his target on the stock to $24, from $17, citing “strong growth prospects, [a] broadening product suite and increasing focus on sales execution.”
He also raised his rating on Taleo (TLEO) to $35 from $29. “Riding the technology adoption curve, the company continues to grow through the downturn and its prospects are only improving at this time of the cycle,” he says. “We expect ongoing margin expansion at the company.”
In today’s trading:
- SFSF is down 4 cents, or 0.2%, to $25.07.
- KNXA is up 61 cents, or 3.5%, to $18.13.
- TLEO is up 38 cents, or 1.3%, to $29.37.
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