JG Capital Reiterates Overweight Rating, $36 PT on Cornerstone OnDemand on 4Q12 Review

In a report published Wednesday, JG Capital reiterated its Overweight rating and $36.00 price target on Cornerstone OnDemand (NASDAQ: CSOD).

JG Capital noted, “Cornerstone OnDemand beat and raised, driven by strong demand for their SaaS-based learning, performance and recruiting apps. We continue to believe competition has decreased for CSOD, particularly at the low end. In terms of the TAM, we think there are a total of ~400M global seats with 8% penetration or 50M seats of which CSOD has 10.5M or ~20% market share. We think the consolidation in CSOD's market, namely Taleo/Oracle, SuccessFactors/SAP and Kenexa/IBM, continues to benefit CSOD in terms of win rates. CSOD will refresh their recruiting app in March, which should improve their win rates.”

Cornerstone OnDemand closed on Tuesday at $32.49.