NetSuite Benefits from Increased Interest in Cloud-Based EPR, Morgan Stanley Reports

Following Morgan Stanley's recent meeting with NetSuite Inc.'s N CFO Ron Gill (along with Morgan Stanley's ongoing checks), “we believe that N's business is benefiting from increasing interest in cloud-based ERP and two-tier ERP in the enterprise space, and N's growing ability to address this demand through expanding sales capacity and partnerships like ACN.” “With the stock trading at 8.5x EV/CY12 sales (the highest valuation in the SaaS group), we prefer to stay on the sidelines here, but also believe that N's business is on an upward trend,” Morgan Stanley writes. NetSuite closed Monday at $35.21.