Oppenheimer Believes Callidus Software (NASDAQ: CALD) Still Has Room to Grow

By Ryan Adsit

In a report released today, Brian Schwartz from Oppenheimer reiterated a Buy rating on Callidus Software (NASDAQ: CALD), with a price target of $30. The company’s shares closed yesterday at $23.90, close to its 52-week high of $24.85.

Schwartz commented:

“We think CallidusCloud is experiencing strengthening trends, the business drivers for growth look healthy, and the more consistent execution in reported results this year appears sustainable which increases our confidence in the name. The business enters 2H:17 with strong momentum; deepening partnerships with SAP and salesforce.com could be a catalyst going forward in capturing a larger share of customers’ IT budgets and in winning new enterprise logos. Bottom Line: While questions about CallidusCloud’s business momentum and opportunity have arisen over the past month, we detect strengthening trends. Also, we see a good set-up for management to achieve consensus estimates and the annual outlook in the upcoming results which should trigger a higher stock price.”

According to TipRanks.com, Schwartz is a top 25 analyst with an average return of 23.2% and a 76.6% success rate. Schwartz covers the Technology sector, focusing on stocks such as Ultimate Software, Instructure Inc, and Salesforce.com.

Currently, the analyst consensus on Callidus Software is Strong Buy and the average price target is $31.50, representing a 31.8% upside.

In a report issued on June 22, Roth Capital also reiterated a Buy rating on the stock with a $33 price target.

Based on Callidus Software’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of $58.14 million and GAAP net loss of $6.9 million. In comparison, last year the company earned revenue of $49.75 million and had a GAAP net loss of $5.69 million.

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Callidus Software, Inc. offers cloud software services. Its product includes CallidusCloud, a software that enables organizations to drive performance and productivity across their business with its Hiring, Learning, Marketing, and Selling clouds.