Morgan Stanley Upgrades Anaplan On Improving Demand, Execution Consistency

Checks suggest that Anaplan Inc PLAN may be well positioned to resume sustainable growth in the 30% range, driven by improving demand and steady execution, according to Morgan Stanley.

The Anaplan Analyst: Stan Zlotsky upgraded Anaplan's stock from Equal-Weight to Overweight, while raising the price target from $68 to $100.

The Anaplan Thesis: The company has come off a challenging 2020 and now seems poised to return to growth of more than 30%, given the “strong underlying demand trends, product differentiation, improving budgets, and steady execution under the new head of sales,” Zlotsky said in the note.

Anaplan delivered a strong performance in the fiscal fourth quarter and its partners “are carrying momentum into FY22,” which should give the company “plenty of room” to exceed expectations for billings, he noted.

The analyst considers the revenue estimate for fiscal 2022 as conservative, “with room to move up the initial $550M guide to 25%-26% YoY growth, and walk it up through the year on the back of beat/raise results.”

PLAN Price Action: Shares of Anaplan had risen by 3.6% to $85.28 at the time of publication Tuesday.

Photo courtesy of Anaplan.