Why Salesforce Is A 'Best Idea' For Morgan Stanley

In a report published Friday, analysts at Morgan Stanley maintained their Overweight rating on

. The company continued to witness acceleration in year-on-year transaction growth in Q1. Transaction growth is a measure of the company's overall usage trends. Salesforce.com witnessed 77 percent year-on-year growth in transactions in 1Q15, higher than the growth seen in 4Q14 and significantly ahead of growth levels a year ago. In fact, the company saw 63 days of more than two billion transactions and 12 days of over three billion transactions in 2Q15. "We believe that with low probability of a deal being done for CRM and once the M&A euphoria subsides, investors will refocus on strength of the company's underlying fundamentals," the analysts said. In fact, the transaction growth seen in 1Q15 is indicative of very strong fundamentals, which is likely to lead to billings upside, despite the strong seasonality surrounding enterprise purchasing cycles. According to Morgan Stanley, "CRM stock provides plenty of opportunities for investors all year 'round, not just in the second half. We are still conducting our usual end of quarter checks, but preliminary conversations pointed to limited sales reshuffling compared to a year ago, which should be conducive to sales people hitting their numbers and good reported results."