NEW YORK (TheStreet) -- Marketo (MKTO)  stock was downgraded to "sector perform" from "outperform" at RBC Capital Markets. 

But RBC raised its price target on the stock to $34 from $30 based on a "weighted probability of outcomes."

"Given the recent elevated amount of speculation regarding a take-out of the firm, we now believe the risk-reward on the stock is more balanced," RBC wrote in a note to investors.

In January, the firm upgraded the stock based on fundamentals that could improve, valuation and potential strategic interest.

"Given the recent share price movement based on news reports regarding a potential sale of the business, we believe valuation now reflects a balanced risk-reward. While a take-out is certainly possible at a higher valuation, we are mindful of where the stock could trade absent a deal," the firm added.

Marketo is a San Mateo, CA-based company that makes marketing automation software for companies.

Shares of Marketo are lower by 0.56% to $32.02 in pre-market trading on Tuesday

Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.

The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and weak operating cash flow.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: MKTO

Image placeholder title