Software: Goldman Sets Buy On TLEO; Neutral on CNQR, N

Goldman Sachs software analyst Stephanie Withers this morning launched coverage on three companies in the software-as-a-service sector.

• Taleo (TLEO): She starts the stock with a Buy rating and $34 target. She sees rising EPS estimates and multiple expansion “as the company extends its reach from its recruiting core more broadly into the enterprise.”
• Concur (CNQR): Withers launches with a Neutral rating and $44 target. “A premium valuation reflects the many positives of the investment story, while risks remain, including a link to payroll, which lags in a recovery, and an ongoing CFO search,” she writes.
• NetSuite (N): She rates the stock Neutral, with a $16 target, citing “concerns over SMBs, competition from large incumbents and a more challenging slice of the software market.”

In today’s trading:

• TLEO is up 85 cents, or 3.2%, to $27.72.
• CNQR is down 13 cents, or 0.3%, to $42.50.
• N is up 58 cents, or 4.1%, to $14.65.