UPDATE: Goldman Sachs Initiates Coverage on RetailMeNot with Neutral Rating, $31 PT on Full Valuation

In a report published Tuesday, Goldman Sachs analyst Debra Schwartz initiated coverage on

with a Neutral rating and $31.00 price target. In the report, Goldman Sachs noted, “We are initiating coverage of RetailMeNot with a Neutral rating and a $31 12-month target price. RetailMeNot is the category leader in digital couponing, a category with a large addressable market that is still in the early stages of shifting online. While RetailMeNot continues to see strong usage growth across its site and mobile app and is innovating in new technologies, the platform shift to mobile presents uncertainty in customer acquisition and monetization. With the stock trading at 16X 2014E EV/EBITDA, we believe RetailMeNot's strong growth potential is appropriately reflected in current valuation given the uncertainty in mobile and competitive risks.” RetailMeNot closed on Monday at $32.28.