After Management Meeting, Morgan Stanley Thinks ORCL Is A "Clear Secular Winner"

Morgan Stanley spent Thursday with Oracle Corp. ORCL President Safra Catz and has been doing field checks. “We feel more confident that a) the apps. bus. is accelerating, b) Q4 visibility is high and pipeline coverage strong, c) large deals are back and ORCL is becoming more strategic, d) middleware should continue to surprise favorably, e) hardware is inflecting and can sustain 10%+ rev. growth, f) margins will exceed previous peaks sooner than most think,” Morgan Stanley writes. “ORCL is now a clear secular winner, 20% EPS growth is sustainable, the stock is too cheap at 12x--and it remains our top large cap pick.” Oracle closed Thursday at $33.43.