Oppenheimer Reiterates Outperform On Callidus, $17 PT


 Oppenheimer analyst Brian Schwartz reiterated an Outperform rating on Callidus (NASDAQ:CALD) with a price target of $17.00, which represents a potential upside of 11.0% from where the stock is currently trading.

Schwartz commented, “CALD’s growth acceleration with better margins story continued in 3Q with upside results, management raising 2014 growth guidance again, and initiating 2015 revenue guidance midpoint ~$10M above consensus. Key metrics were impressive: 46% SaaS deferred revenue growth, 26% SaaS revenue growth, and ~400bps recurring revenue gross margin expansion y/y. Bottom Line: CallidusCloud’s multi-year migration from commissions vendor to multiple products provider to an integrated lead-to-money platform for the global enterprise is mostly complete and in a monetization phase that’s delivering/projecting 20%+ revenue growth per annum through 2016 (up from mid-teens growth) while expanding margins. This growth/ profitability will be realized largely through greater distribution, deeper customer penetration, and operating leverage. Last, a faster growth and profitability trend should yield a reevaluation of CALD’s multiple.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Brian Schwartz has a total average return of 11.9% and a 67.9% success rate. Schwartz has a 41.7% average return when recommending CALD, and is ranked #610 out of 3363 analysts.

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