UPDATE: Morgan Stanley Initiates Equal-Weight on ServiceNow; Upside Priced In

Morgan Stanley initiated coverage on ServiceNow NOW with an Equal-weight rating. Morgan Stanley commented, "NOW is a disruptive share gainer in the $13B IT operations management market, delivering strong growth with significant runway. At 10.3x CY13 EV/Sales, however, the upside looks priced in, and we initiate at Equal-weight. Strong execution could drive NOW toward our $39 bull case." ServiceNow closed at $24.35 on Monday.