Oppenheimer Reports Strong 1Q For Taleo

According to Oppenheimer, Taleo TLEO posted strong 1Q results. Oppenheimer said that following TLEO's strong start to FY11 and its belief it can accelerate organic bookings growth as the year unfolds, it is raising the price target to $41 from $37. “TLEO delivered solid 1Q11 results across-the-board, as it experienced robust uptake across its broad product portfolio and benefited from a strong consulting performance. These dynamics drove revenue of $74.3 million, up 34.5% year-over-year and $2.6 million above consensus. The revenue upside combined with cost controls and the recognition of some deferred revenue enabled TLEO to top Street EPS of $0.17 by $0.06. Given TLEO's large market opportunity, its attractive valuation (23x 12' FCF/shr) and our belief it can sustain >20% organic subscription-revenue growth for the next several years, we remain buyers.” Taleo closed yesterday at $35.02.