UPDATE: Morgan Stanley Initiates Coverage On Zendesk As Emerging Market Leader

In a report published Monday, Morgan Stanley analyst Jennifer Swanson Lowe initiated coverage on

with an Equal-Weight rating. In the report, Morgan Stanley noted, “We see ZEN as an emerging leader in Customer Service software, disrupting an established multi-$B market with a differentiated solution. We think shares have upside from here and our DCF supports a $17 price, but we see more upside potential in other names like NOW and VEEV, and we initiate at EW.” Zendesk closed on Friday at $15.39.