UPDATE: JP Morgan Downgrades Eloqua to Neutral on Oracle Acquisition

JP Morgan reduced its rating on Eloqua

from Overweight to Neutral with a price target that has been reduced from $27 to $23.50. JP Morgan commented, "ORCL announced yesterday that it will acquire B2B marketing automation vendor ELOQ for $871 million in cash. At $23.50 per share, or 11.0x LTM subscription revenue, the ELOQ deal is more expensive than ORCL's recent major SaaS acquisitions, but still below ELOQ's recent alltime high ($24.83) and our prior ELOQ price target ($27). We maintain our price target and rating on ORCL, but are downgrading ELOQ to Neutral with a $23.50 Dec-13 price target to reflect the offer price." Eloqua closed at $33.94 on Thursday.