UPDATE: Goldman Sachs Downgrades Envivio to Neutral Following Sharp Earnings Miss

Goldman Sachs lowered its rating on Envivio ENVI from Buy to Neutral and reduced its price target from $14 to $5. Goldman Sachs said, "Envivio preannounced 2QFY13 (July), expecting revenues of $10-11 mn vs. prior guidance of $17-18 mn, driven by a shortfall in North America and Europe, as macro weakness caused a slowdown in major project implementations and lengthening sales cycles. Envivio noted that it did not see a change in its win/loss ratio or competitive positioning. We downgrade the stock to Neutral on reduced confidence and visibility into the company's revenue growth trajectory. Since adding Envivio to the Buy List on 5/20/12, the shares are -26% vs. the S&P500 +8%." Envivio closed at $5.70 on Monday.