SuccessFactors (SFSF) shares are trading higher after Janney Capital analyst Sasa Zorovic raised his rating on the stock to Buy from Neutral, with a new target price of $24, up from $18.
The move was part of a generally upbeat assessment of companies in the HR-focused portion of the software-as-a-service segment. Zorovic also repeated his Buy rating on Taleo (TLEO), lifting his target to $33 from $29, and reiterated a Neutral rating on Kenexa (KNXA), but with a new target of $15, up from $11.
“The improving economy is leading to increased demand for software in general, and SaaS HR software in particular,” Zorovic writes in a research note. “The economic situation has improved markedly in the U.S. (and elsewhere) with demand for software picking up across many areas. The improving employment picture both increases the demand for HR products and decreases the risk of the HCM [human capital management] companies.”
In today’s trading:
- SFSF is up $1.10, or 5.4%, to $21.36.
- TLEO is up $1.01, or 3.8%, to $27.88.
- KNXA is up 58 cents, or 4.1%, to $14.62.
Earlier: Software: Goldman Sets Buy On TLEO; Neutral on CNQR, N
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