UPDATE: UBS Downgrades Marketo, Inc (MKTO) to Sell

July 11, 2013 7:10 AM EDT
Get Alerts MKTO Hot Sheet
Price: $35.25 --0%

Rating Summary:
    5 Buy, 13 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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(Updated - July 11, 2013 11:09 AM EDT)

UBS downgraded Marketo, Inc (NASDAQ: MKTO) from Neutral to Sell with a price target of $22 (unchanged). The downgrade is based on valuation.

"MKTO stock is trading at nearly double its $13 IPO price, and its forward EV/S multiple of 11.0x is in the top quartile of our SaaS comp group. We believe current valuation gives credit to superior growth in recent years and for the near future. However, it does not appear to adequately reflect mid/long-term risk from the co's reliance on the salesforce.com (Nasdaq: CRM) customer base (3/4 of MKTO's customers also use CRM) and CRM's planned acquisition of competitor ExactTarget. In addition, the list of potential acquirers is further shrinking after Adobe's (Nasdaq: ADBE) plan to buy Neolane"

For an analyst ratings summary and ratings history on Marketo, Inc (NASDAQ: MKTO) click here. For more ratings news on Marketo, Inc click here.

Shares of Marketo, Inc closed at $24.95 yesterday.

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