SuccessFactors (SFSF), which provides software that helps firms automate, streamline and build consistency in the hiring and management of employees, earns a $35 12-month price target from Goldman Sachs, a 19% premium to current prices.
Goldman bases its outlook on upward revision to its revenue and earnings estimates for 2011, which includes a view that a recovering economy will boost hiring. The company's fourth-quarter and 2010 earnings are due to be released Feb. 9. Goldman's profit model calls for 2010 revenue of $205 million and a loss of 23 cents per share; revenue of $266 million and a loss of 14 cents per share in 2011; and revenue of $330 million and earnings of 8 cents per share for 2012.
Standard & Poor's, which has a "buy" rating on the shares, says the company is investing heavily in future growth, and so operating expenses will be around 96% of revenue in 2010 and 2011, and, after factoring in stock-based compensation expense, costs are expected to exceed revenues. It expects a loss of 7 cents per share in the fourth quarter and a 26-cent loss per share for 2010. Its poll of analysts resulted in a mean estimate of earnings per share of 11 cents for 2011, or a 57% increase. Shares are up 2.4% this year.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV