Morgan Stanley Maintains Overweight on Salesforce.com after meeting with CFO

Morgan Stanley has published a research report on Salesforce.com

after the firm met with company CFO Graham Smith. In the report, Morgan Stanley writes, "Following a meeting with CFO Graham Smith, checks and updated transactional data, we feel increasingly comfortable that we could see several elements converge in Q4: 1) a reacceleration in billings (net currency), 2) backlog growth north of 30% off $1.5B in Q4-11, 3) potentially the disclosure of Annual Contract Value (

) that is more in-line with headcount growth (35%+) and 4) a commitment to 50-100bps of margin expansion in FY13. If we see some or all of these elements, the stock should return to pre Q3 levels." Morgan Stanley maintains its Overweight rating on Salesforce.com, which is currently trading up $6.84 from yesterday's $107.70 closing price.