Why Now Is The Time To Be Buying Salesforce

Given salesforce.com, inc. CRM's unmatched secular positioning and attractive risk/reward, Morgan Stanley’s Keith Weiss has dubbed the stock "Top Pick."

Weiss maintains an Overweight rating on the company, with a price target of $107.

The price target represents upside potential of 43.8 percent, based on salesforce.com’s closing price on November 4.

Compelling Buying Opportunity

Weiss pointed out that the investor pushback seen by the stock was driven by uncertainties regarding M&A, near-term billings growth and competition fears associated with Microsoft Corporation MSFT.

However, the analyst believes these concerns lead to a compelling buying opportunity given that the recent “uneven” billings growth and fears there could be a large M&A ahead have led the shares to decline to the low end of their historical valuation range.

Reasons To Buy

“With a strong innovation engine and dominant positioning in cloud-based customer facing applications, Salesforce.com remains at the nexus of the key secular trends in technology,” Weiss went on to say.

In fact, the threat of a large M&A appears to be receding, and investors are likely to shift their focus to fundamentals in the near future.

The analyst explained that while investing in software growth, investors should buy robust secular growth assets during periods when they trade cheaply, an opportunity salesforce.com presents currently.