Morgan Stanley: Salesforce (CRM), Instructure (INST), Workday (WDAY), And Zoom (ZM) Recommended In This Environment

By Amit Chowdhry ● May 9, 2022
  • Morgan Stanley analyst Keith Weiss is recommending 4 software-as-a-service stocks in this current environment. These are the details.

Morgan Stanley analyst Keith Weiss is recommending 4 software-as-a-service stocks in this current environment with issues like rising interest rates and higher macro uncertainty. Plus investors are also more focused on investing in companies with stronger margins as the high-growth sector of the market is continuing to suffer in the current environment.

Given the margins, valuable recurring bases, and positive fundamentals, Weiss cited Salesforce, Instructure, Workday, and Zoom Video Communications as being the best positioned. These 4 stocks are ranked in the top-10 positions.

“The analysis reinforces our conviction in companies like Instructure, Zoom, Salesforce, and Workday where ~65, ~52%, ~44%, and ~40%, of their total enterprise value, respectively, can be explained by their installed base, meaningfully underpricing the growth potential of each company moving forward,” wrote Weiss in a research note.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.