UPDATE: Goldman Sachs Initiates Coverage on Zulily on Full Valuation

In a report published Tuesday, Goldman Sachs analyst Debra Schwartz initiated coverage on Zulily (NASDAQ: ZU) with a Neutral rating and $36.00 price target.

In the report, Goldman Sachs noted, “We initiate coverage of Zulily with a Neutral rating. We believe the long-term opportunity in online and mobile growth of moms and kids retailing is, at least in the near term, reflected in the stock's premium valuation. Zulily is a curated marketplace creating demand for a fragmented supplier base of small brands by aggregating supply at compelling prices for a brief window of time. Its inventory-less model enables both attractive cash flow and growth opportunities. Zulily's ability to maintain its rapid growth and share gains would be determined by brand strength, mobile adoption, customer service, and merchandising.”

Zulily closed on Monday at $37.09.