Morgan Stanley Reports Beat for Oracle Corp.

Morgan Stanley is out with its report on Oracle NASDAQ: ORCL) after ORCL reported a 2Q EPS beat. In a note to clients, Morgan Stanley writes, "Margin improvements in the Sun biz and continued tight expense control, drove op. margins to 44%, 330 bps ahead of cons., and drove EPS of $0.51, $0.05 ahead of cons. ORCL put 3Q guidance solidly ahead of the street,meaning FY11 ests. go up by at least $0.08 —representing ~25% YoY growth. With the stock at 14.0X CY11 EPS and ests. moving materially higher, ORCL has more upside and we remain buyers." Morgan Stanley maintains its Overweight rating and increases its price target from $34 to $35 on ORCL. ORCL is trading at $31.89.