Bank of America Provides Color on Taleo

Bank of America provided color on Taleo TLEO. In a research report published today, the rating agency commented on the company's Q2 results, which are due to be published on August 4. In the report, Bank of America states, “Buoyed by the accelerating organic short term subs billings of 24% y/y in Q1 (vs. +18% y/y in Q4), total revenue and EPS could be ahead of our estimate and consensus of $76mn (+34% y/y, organic growth est of +21%) and $0.21, respectively. We are comfortable with our total billings estimate of $80mn (+37% y/y, organic billings est of +24%) and expect to see upside of $2-3mn. Our deferred rev estimate is $119mn, +3.2% q/q and we're modeling op margin of 13% vs. 14% in Q1, given the focus on expanding sales and distribution.” At the moment, the rating agency has a Buy rating and a price target of $41 placed on the company's stock. On Monday, TLEO lost 0.73% of its value to end the day at $32.86.