Wall Street analysts have been ‘talking up’ HR software firm SuccessFactors Inc., citing ‘confusion’ that may have led to a sharp 22 per cent decline in its shares over the past three months. During this period, Success Factors has acquired software provider Plateau Systems.
Canaccord Genuity analyst Richard Davis has upgraded his rating on SuccessFactors shares to ‘buy’ from ‘hold’, despite ‘acknowledging general investor angst’. On the strength of this endorsement, SuccessFactors shares managed a marginal gain, to $29.69, by the close of trading on 27th June.
Comment: Despite their recent decline, SuccessFactors shares have gained over 35 per cent in value over the past year. Might this be damning the company with faint praise? We’ll have to wait until 25th July, when Success Factors is due to reveal its second quarter earnings.