Zendesk Added ~3000 New Customers in Q4, Prompts PT Raise At Morgan Stanley

In a report published Thursday, Morgan Stanley analyst Jennifer Swanson Lowe reiterated an Equal-Weight rating on

, and raised the price target from $26.00 to $28.00. In the report, Morgan Stanley noted, "ZEN's traditional small business core continues to perform well with the company adding ~3,000 net new customers in the quarter, but the company's push into larger customers is also showing early success. The company won >500 new customers in the enterprise and mid market space in the quarter, while 24% of MRR came from accounts with >100 seats, up from 23% in Q3." The report continued, "Retention also performed well with renewal + up sell at 122% in the quarter vs. 123% in Q3. CY14 was a sales investment year for ZEN as the company built out an enterprise sales force. In CY15, we expect continued investment, with greater focus on scaling the business to support an influx of new users as sales investments start to yield returns." Zendesk closed on Wednesday at $25.39.