UPDATE: Goldman Sachs Initiates Coverage on Demandware

According to a research report published this morning, Goldman Sachs has initiated Demandware

with a Neutral rating and $30 PT. In the report, Goldman Sachs commented, "We see Demandware as one of the best positioned Software-as-a-Service vendors longer term for three reasons: 1) growth benefits from two of the biggest trends in technology (e-commerce and SaaS), 2) the offering is significantly differentiated and difficult to replicate, and 3) existing customers rarely churn and are profitable, as illustrated by 80% subscription margins. Despite our positive view, though, at 12.2x 2012 EV/revenues versus the group at 6.8x, we see limited near-term stock outperformance and believe DWRE will need to grow into its multiple." Demandware closed yesterday at $28.28.