MKTo all it's competitors have been swallowed up by larer companies so they stand alone..Trgt $57 Goldman buy
MKTO Marketo price target raised ot $57 from $50 at Goldman
Goldman raised Marketo's price target to $57 from $50 following the Q4 report to reflect revised long-term revenue growth and margin forecasts. Shares are Buy rated.
Strong top-line results, strength in all segments and verticals. Unsurprisingly, mgmt plans to invest heavily this year in sales & marketing and R&D, pushing out profitability until late-2015. Competitive situation hasn't changed: company is still gaining share now that its standalone competitors have been swallowed up by larger companies.
Other upgrades and price targets
Canaccord Genuity raised its tgt price to $52 from $48, noting, while the push-out of FCF profitability by a couple of quarters to the end of 2016 could #$%$ some investors, firm believes, at least in the intermediate term, that co's strong revenue growth will continue to propel the shares higher.
Raymond James raised its MKTO tgt to $50 from $38; Outperform
Credit Suisse raised its MKTO tgt to $50 from $45; Outperform
JMP Securities raised its MKTO tgt to $50 from $42; Mkt Outperform
One thing I neglected to mention yesterday about CSOD is that it was in the same position a few years ago at MKTO is in now: at the time of its IPO, all of CSOD's standalone competitors were acquired by larger co's (Taleo by ORCL, SuccessFactors by SAP, Kenexa by IBM) and the worry was that CSOD would suffer as its competitors brought to bear the greater resources of their new parent companies. This of course, didn't happen: CSOD's competitors lost their edge and lost their focus as part of the big software behemoths, and CSOD has continued to gain share and grow faster than the competition ever since. CSOD's CEO had some interesting comments on that during the call, and reiterated his belief of the "demise" of SuccessFactors (as part of SAP) by the Spring.