UPDATE: Morgan Stanley Reiterates Oracle at Overweight on Better Fundamentals

Morgan Stanley maintained its Overweight rating on Oracle ORCL as the company's 10-Q flinch shows improved underlying fundamentals. Morgan Stanley commented, " ORCL's 10-Q showed: 1) organic cc license growth better than we first modeled, 2) a much better large deal environment, 3) good deferred license coverage and 4) margin improvements coming from both efficiency gains and mix shift. Additionally, SW maint. margins continued at all-time highs, giving us confidence that ORCL can continue to protect and grow EPS - which should be aided by continued repurchases given a strong QoQ increase in onshore cash (despite another large buyback). With sales capacity ramping well, Fusion Apps accelerating, Exa-series sustaining strong growth and mild comps continuing ahead, the stock is easier to own than most headed into CY13." Oracle closed at $33.61 on Wednesday.