- Prior to the acquisition of Saba, CSOD was valued like an average HCM player.
- Improved growth, cost synergies, and other sales productivity initiatives are set to drive margin growth and cash flows in the coming quarters.
- CSOD's leverage will also improve given its focus on reducing the debt burden on its balance sheet.
- The Street is expected to digest the improved picture at a slow rate, given execution worries.
- The market opportunity is sufficient to justify a positive outlook.
For further details see:
Cornerstone OnDemand: Improved Growth Outlook Makes The Stock Attractive