Cornerstone OnDemand (CSOD) is a cloud-based provider of talent-management software and services, focused on recruiting, learning management and performance management. Shares are nesting against their 30-day average after having risen up along that level all year.
Seven of eleven analysts following the stock have a “buy” rating, and it has already surpassed the consensus target of $49. However, that target is slightly skewed by some lowball estimates, like the $41.00 target from JMP Securities. However, there are certainly targets on the higher side as well, with $57.00 from Credit Suisse and $60.00 from Barclays.
So I’m anticipating it should break out again soon, as it is not expensive for a small-cap growth stock.
Recommendation: Buy CSOD for a $57 target.
Jon Markman operates the investment firm Markman Capital Insights. He also writes a daily trading newsletter, Trader’s Advantage, and CounterPoint Options, a service geared towards helping individual traders make steady, consistent profits with the VIX. . Check out his Top Stock for 2012 here.
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