E2open downgraded to Sell from Neutral at Goldman Sachs

Goldman Sachs analyst Adam Hotchkiss downgraded E2open (ETWO) to Sell from Neutral with a price target of $2.90, down from $3.50. The shares are likely to remain under pressure as historically low retention levels, organic sales challenges, and a constrained balance sheet limit the opportunity for the business to return to meaningful growth over the next 12-18 months, the analyst tells investors in a research note. The firm says E2open’s return to growth beyond low-single digits is less clear in an operating environment that continues to be impacted by higher levels of buyer scrutiny, extended sales cycles, and share shift to faster growth peers.