UPDATE: Goldman Sachs Upgrades Demandware to Buy on Pullback Opportunity

Goldman Sachs raised its rating on Demandware

from Neutral to Buy with a reiterated $32 price target. Goldman Sachs commented, "We add DWRE to the Americas Buy List with an unchanged $32 price target and 42% upside. We see the stock pullback (down 28% from peak) due to Europe weakness (and the related Neckermann insolvency filling) offering an attractive entry for a leading SaaS and E-Commerce player. The drivers of our call: 1) organic growth should accelerate to 36% in 2013 from 26% in 2012 even with a 50% reduction in revenues from Neckermann, 2) customer signings should improve." Demandware closed at $22.52 on Thursday.