08:54 AM EDT, 09/06/2024 (MT Newswires) -- Smartsheet ( SMAR ) "solid" execution in fiscal Q2 continued with 120% growth seen in enterprise net revenue retention and robust large deal performance, analysts at Morgan Stanley said in a Friday note.

The firm is also poised to continue posting positive earnings before interest and taxes and free cash flow revisions, the note added.

Smartsheet ( SMAR ) is in a favorable position because of its 17% annual recurring revenue growth in the second quarter and an anticipated 14.5% ARR growth for fiscal 2025, combined with a tailwind from pricing model changes in fiscal 2026, the note said.

The firm rolled out its new pricing model in June, the analysts said, and "although only a small number of customers have reached their first true up period, positive early results gives encouragement."

Morgan Stanley raised Smartsheet's ( SMAR ) price target to $57 from $55 and maintained an overweight rating on the stock.

Shares of the company were up 4.4% in recent Friday premarket activity.

Price: 51.50, Change: +2.15, Percent Change: +4.36