Zendesk +7.2% following underwriter launches

Two Zendesk (ZEN) IPO underwriters - Canaccord and Pac Crest - have launched coverage with bullish ratings, and three - Credit Suisse, Goldman, and Morgan Stanley, have issued neutral ratings.

Canaccord declares Zendesk to have "a best-in-class customer engagement platform" that it thinks is "better designed" than Salesforce's (CRM) Service Cloud platform, which has a more enterprise-focused customer base. The firm expects Zendesk to head off any fresh Salesforce challenges, and to keep grabbing share from legacy vendors.

Pac Crest respectively sees Zendesk growing 55%, 45%, and 36% in 2014, 2015, and 2016, and asserts the company is "radically changing the customer service segment."

Likewise, Morgan Stanley thinks Zendesk is "disrupting an established multi-$B market with a differentiated solution." But it sees more potential upside at current levels in other cloud software names such as ServiceNow and Veeva.

Shares now +83% from a $9 May 15 IPO price.

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Comments (1)
  • bleweagle
    , contributor
    Comments (38) | Send Message
    I plan to watch this real close....
    9 Jun 2014, 07:58 PM Reply Like
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