Janney upgrades SuccessFactors, says company ‘battle-tested’ after downturn

Ahead of the Bell: SuccessFactors upgraded

NEW YORK — Having weathered its worst quarter during the economic downturn, SuccessFactors Inc. is now “battle-tested” and should be able to maintain bookings growth for at least another five years, an analyst said on Tuesday.

Janney Capital Markets analyst Sasa Zorovic upgraded the business software maker to “Buy” from “Neutral,” boosting his target price to $24 from $18. The company, he said, will likely keep its bookings growth at or near 20 percent a year for at least the next five years.

“The improving economy is leading to increased demand for software in general, and SaaS HR software in particular,” the analyst wrote in a note to investors. “SaaS HR” software stands for software as a service, human resources software.

SuccessFactors, based in San Mateo, Calif., makes software for a broad range of industries for goal management, employee reviews and compensation management among other uses.