William Blair Maintains Outperform On Cornerstone OnDemand Following Plans To Acquire Evolv
In a research report issued to investors today, William Blair analyst Justin Furby maintained coverage on Cornerstone Ondemand (NASDAQ:CSOD) with an Outperform rating, as the company announced its intention to acquire privately held Evolv, Inc., a provider of talent assessment and workforce analytics solutions, for $42.5 million and the assumption of up to $2 million of debt.
Furby wrote, “Cornerstone has always trumpeted its organic suite as a differentiator in the market, and we do not believe that Tuesday’s announcement dilutes that messaging. Even Workday, which has quite differentiated technology and an organic development mentality, decided to acquire into this space through its recent acquisition of Identified. Others in the market have done the same, and even looking outside HR and into other areas like IT service management, we have seen vendors like ServiceNow acquire in the analytics market. These acquisitions are often people driven just as much as they are technology driven, and our sense is that Cornerstone will work to integrate the technology into its core application over time. We expect more color from management on this during the company’s third-quarter earnings call, likely to be held in early November.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Justin Furby has a total average return of -3.0% and a 22.2% success rate. Furby has a -14.8% average return when recommending CSOD, and is ranked #2610 out of 3319 analysts.