Oppenheimer Reiterates a Buy Rating on Callidus Software

By Austin Angelo

In a report released today, Brian Schwartz from Oppenheimer reiterated a Buy rating on Callidus Software (NASDAQ: CALD), with a price target of $22. The company’s shares closed yesterday at $15.90.

Schwartz wrote:

“We present a mid-quarter update with investor sentiment likely weighing negative on CALD shares for the following reasons: 1) The 2017 SaaS revenue growth target was set at an above-average SaaS industry rate, but is below CALD’s 2016 and 2015 Tier-1 growth rate (i.e., 30%+); 2) the capital markets tend to have negative reactions to quarterly reports that are not beat-and-raises subsequent to selling stock; and 3) the stock price has declined ~15% YTD, and SaaS stocks that aren’t working usually have a hard time moving up until the calendar turns.”

According to TipRanks.com, Schwartz is a top 25 analyst with an average return of 18.3% and a 66.4% success rate. Schwartz covers the Technology sector, focusing on stocks such as Palo Alto Networks, Ultimate Software, and Instructure Inc.

Callidus Software has an analyst consensus of Moderate Buy, with a price target consensus of $22.50.

Based on Callidus Software’s latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $52.51 million and GAAP net loss of $3.95 million. In comparison, last year the company earned revenue of $44.94 million and had a GAAP net loss of $2.24 million.

Based on the recent corporate insider activity of 42 insiders, corporate insider sentiment is neutral on the stock. Most recently, in August 2016, Charles Boesenberg, a Director at CALD sold 17,670 shares for a total of $349,336.

Callidus Software, Inc. provides cloud software. The company is doing business as CallidusCloud. It enables organizations to drive performance and productivity across their business with its Hiring, Learning, Marketing and Selling clouds. The CallidusCloud product suite provides Software as a Service (SaaS) solution for all aspects of sales effectiveness, including sales hiring, sales enablement and collaboration, CPQ solutions, incentive design and payment, sales coaching and optimization, and learning management including content authoring. The company was founded in 1996 and is headquartered in Pleasanton, CA.