UPDATE: Goldman Sachs Upgrades Ariba; Raises PT

According to a research report published today, Goldman Sachs has upgraded Ariba Inc. ARBA from Neutral to Conviction Buy, and has increased PT from $34 to $40. In the report, Goldman Sachs explained, “The drivers of our call on the largest B2B and SaaS Spend Management vendor are: (1) improving fundamentals with increased adoption of B2B connectivity and SaaS, as shown by accelerating 1Q booking growth after adjusting for pricing changes, (2) a favorable catalyst pipeline after March results with accelerating growth and margin expansion, and (3) increased likelihood of M&A given the unique, complementary asset Ariba maintains and the increase willingness for SaaS acquisitions that software leaders have recently displayed.” Ariba closed Friday at $30.64.