Box (NYSE:BOX), DocuSign (NASDAQ:DOCU) and Asana (NYSE:ASAN) are among the software-as-a-service companies that could see some upside in the coming quarters, Morgan Stanley said.
“Given the negative market sentiment around SaaS, we see potential for a clean beat & raise to get nicely rewarded, while anything with hair could face further pressure,” analysts at the firm wrote in a note to clients. “BOX has the clearest momentum and best setup in Q2/FY26, in our view. More moving pieces and wrongs-to-right at ASAN/DOCU.”
For Box, which is led by CEO Aaron Levie, Morgan Stanley’s analysts said there is “strong potential” for a beat and raise, as several other analysts have upped their estimates in recent days. Morgan Stanley has an Equal-Weight rating on Box.
For DocuSign, the analysts see upside in the second-quarter, as the company is coming up against an easy comparable, compared to the year-ago quarter. However, there may not be a “significant” raise to its fiscal 2026, the analysts added.
Asana also has the potential to report upside in the second-quarter, but its guidance for the second-half of fiscal 2026 is concerning. “If no meaningful revisions play out, shares remain range-bound,” the analysts added. They have an Equal-Weight rating on Asana.
Lastly, Zoom (NASDAQ:ZM), which is slated to report quarterly results this week, could offer up a “stronger beat” but any kind of “durable acceleration” is probably further out. “Stabilization [is] encouraging – [but] wait for greater growth visibility before turning more positive.”