UPDATE: Morgan Stanley Upgrades ServiceNow on Best Growth Story

In a report published Wednesday, Morgan Stanley analyst Jennifer Swanson Lowe upgraded the rating on

from Equal-Weight to Overweight, and named a $62.00 price target. In the report, Morgan Stanley noted, “We view NOW as one of the best growth stories in SaaS, while our analysis of NOW's end markets argues for 25%+ upside in the stock from here.NOW's multiple is steep at 13x EV/CY14 sales, but at 0.24x EV/Sales/Growth, NOW trades at a discount to the SaaS group average of 0.27x and other best-in-class growth names like WDAY (0.36x) and LNKD (0.32x). We see room for numbers to move higher as NOW adds >2x as many S&M heads in CY13 as it added in CY12. We are raising our CY14 rev. estimate by 3% to $595M, but this still reflects a 30% decline in sales productivity in H213 and another 20% in CY14, which likely proves low.” ServiceNow closed on Tuesday at $49.34.