UPDATE: Goldman Sachs Initiates Marketo at Neutral on Limited Near-Term Upside

In a report published Tuesday, Goldman Sachs analyst Greg Dunham initiated coverage on Marketo MKTO with a Neutral rating and $20.00 price target.

In the report, Goldman Sachs noted, “We expect Marketo to average 33% growth over the next three years due to: 1) accelerated adoption of SaaS marketing automation as CMOs adjust to the world going digital, 2) market share gains driven by Marketo's leading independent position and relationship with B2B marketing organizations, 3) benefits from a move into ancillary markets and functional areas, and 4) higher success rates in larger enterprises. We also see Marketo as a possible acquisition candidate as the market consolidates over the next few years. Despite our positive view, valuation (8.0x 2014 EV/Sales) offers limited near-term upside, in our view.”

Marketo closed on Monday at $22.09.