The firm maintained its "overweight" rating with an $80 price target on shares of Salesforce.
However, Morgan Stanley analysts think shares are trading at an acquisition premium, making the near-term risk/reward more balanced.
Following reports of the company's potential takeover, shares have gained about 11% over the past couple of weeks.
Salesforce is working with financial advisers to field takeover offers, according to Bloomberg.
A takeover of Salesforce would be the largest of a software company, and would help a buyer push into the cloud computing space, Bloomberg added.
San Francisco-based Salesforce.com is a provider of enterprise cloud computing solutions that helps with customer relationship management.
The company delivers its service through Internet browsers and mobile devices, and markets its social enterprise applications and platforms to businesses on a subscription basis, primarily through its direct sales efforts and indirectly through partners.
Insight from TheStreet's Research Team:
Jim Cramer commented on Salesforce.com in a recent post on RealMoneyPro.com. Here is a snippet what Cramer had to say about the stock:
We did not wake up to an $85 salesforce.com (CRM) bid after Microsoft's (MSFT) Satya Nadella shook hands with Marc Benioff for the largest tech takeover of our time. We did not see more than $50 billion go to from one of the most conservative companies in tech land to one of the most aggressive -- and, yes, expensive on any metric -- corporations on Earth. We didn't see Microsoft go from being a company with big ambitions in the cloud to being the biggest cloud company in the world.
But here is what we did see: credence.
Want more information like this from Jim Cramer BEFORE your stock moves? Learn more about RealMoney.com now.
Separately, TheStreet Ratings team rates SALESFORCE.COM INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate SALESFORCE.COM INC (CRM) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and increase in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."
You can view the full analysis from the report here: CRM Ratings Report