B.Riley FBR Believes Cornerstone Ondemand (NASDAQ: CSOD) Still Has Room to Grow

By Carrie Williams

In a report released today, Kevin Liu from B.Riley FBR reiterated a Buy rating on Cornerstone Ondemand (NASDAQ: CSOD), with a price target of $49. The company’s shares closed yesterday at $44.54, close to its 52-week high of $45.87.

Liu wrote:

“We attended Cornerstone OnDemand’s (CSOD) Financial Analyst and Investor Day in New York yesterday (3/13/2018). We left feeling incrementally more confident that the dramatic changes enacted in recent months leave the company poised to reaccelerate growth and deliver substantial margin expansion in the coming years. Management diagnosed several issues that conspired to weigh on growth and profitability in recent years, namely a mix shift in bookings towards non-recurring services engagements, a missed product cycle and overinvestment in the mid-market. External factors like Brexit and Workday’s launch of a learning solution also served as headwinds, although management contends these have since abated.”

According to TipRanks.com, Liu is a 5-star analyst with an average return of 13.9% and a 66.7% success rate. Liu covers the Technology sector, focusing on stocks such as Tyler Technologies, American Software, and Callidus Software.

Cornerstone Ondemand has an analyst consensus of Moderate Buy, with a price target consensus of $45.

Based on Cornerstone Ondemand’s latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $132 million and GAAP net loss of $9 million. In comparison, last year the company earned revenue of $109 million and had a GAAP net loss of $18.62 million.

Based on the recent corporate insider activity of 49 insiders, corporate insider sentiment is neutral on the stock. Most recently, in December 2017, Adam L. Miller, the CEO of CSOD bought 17,750 shares for a total of $115,553.

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Cornerstone OnDemand, Inc. engages in the provision of learning and talent management solutions delivered as software-as-a-service. It also involves in providing support packages; client success framework; technical consulting; and content, implementation, business consulting, and educational services. The company was founded by Adam L. Miller, Steven D.