UPDATE: Goldman Sachs Initiates ChannelAdvisor at Buy on SaaS E-Commerce Benefits

In a report published on Monday, Goldman Sachs analyst Greg Dunham initiated coverage on ChannelAdvisor ECOM at Buy with a price target of $20.00

In the report, Goldman Sachs noted, "ChannelAdvisor accelerated growth in 2012 (23% versus 19% in 2011) as its mix of revenue improved. Part of the acceleration is due to a higher mix of its core revenues, which grew 26% in 2012. Core revenues exclude revenues related to two small acquisitions several years ago that represented 11% of the business in 2010 and now represent 3%. Core revenue is also accelerating as the mix of customer channels has become more diversified across Amazon, E-Bay, and Google. We see the potential for continued acceleration as investments in sales capacity pay off. ChannelAdvisor has increased its sales force headcount 3x in three years, including growing QCRs by 50% in 2012. We believe sales productivity has the opportunity to improve with increased tenure of the sales organization, which could drive higher contribution from new customers in the back half of 2013 and 2014."

ChannelAdvisor closed on Friday at $15.45.