Morgan Stanley recommends Blackline Inc. as top software pick due to accelerating growth, attractive valuation, and limited downside risk.

Morgan Stanley recommends Blackline Inc. as its top software stock to buy now, citing accelerating growth, attractive valuation, and limited downside risk. Analyst Chris Quintero believes the company's annual recurring revenue is poised for an inflection point and highlights management guidance and valuation as supporting factors. With the stock trading at an attractive 13X CY27 FCF, Morgan Stanley reiterates its "overweight" rating and "top pick" designation.