2/9/2010- Morgan Stanley analysts believe that Taleo Corp. (NASDAQ:TLEO) will report solid Q4 earnings on February 10 with generally solid guidance.

Analysts Adam Holt, Jennifer Swanson, and Keith Weiss said, "We expect TLEO to meet/beat consensus revenue/app billings/EPS of $50.5 mn/$50.2 mn/$0.17 (vs. us at $50.5 mn / $51.7 mn / $0.15) as core billings growth continues to accelerate in an improving macro environment. We expect TLEO to guide CY10 at least in line with us at $229 mn (vs. $225 mn consensus), and we think there is upside to consensus billings estimates of +15-16% for CY10. At the same time, margins could be pressured as growth reaccelerates and we see some risk to consensus margins at 14.5% (vs. us at 14.0%) and as dilution from TLEO's secondary is fully incorporated into estimates (which has already started)."

The bank maintains an "overweight" rating on the stock with a $30 price target.

Contact Chip Brian

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