UPDATE: Goldman Sachs Upgrades Marketo on Significant Upside

In a report published Tuesday, Goldman Sachs analyst Greg Dunham upgraded the rating on

from Neutral to Buy, and raised the price target from $32.00 to $45.00. In the report, Goldman Sachs noted, “We add Marketo to the Buy List with a $45, 12-month price target for 38% upside. The drivers of our call are (1) we are more confident in growth after digesting numbers after 3Q results, (2) we see the stock's reaction after the quarter (with shares down 5% despite beating estimates by 8%) as offering an attractive entry point, and (3) we believe that bear fears on salesforce.com are overblown given the large TAM with low penetration. While we believe Marketo is an attractive acquisition candidate and that M&A could provide a floor for shares, we do not believe a takeout is likely given shares are trading at 10x 2014E EV/sales; we lower our price target M&A ranking to “3” (10%-15% probability).” Marketo closed on Monday at $32.71.