Morgan Stanley Reports Upside On Oracle

According to Morgan Stanley, Oracle (NASDAQ: ORCL) apps lead Q3 and pull a long train of products.

Morgan Stanley reported that, with 29% organic constant currency (cc) growth in the app biz against tough comps, it has seen the strongest evidence yet that it is at the beginning of a major application investment cycle and ORCL is gaining share. “With applications representing the tip of the spear for ORCL, pulling along their broad portfolio of software and hardware technologies — investors may be underestimating the overall growth implications of this trend across the portfolio of ORCL products. After a year of out-performance in the Sun integration, ORCL's core biz is set to drive out-performance through CY11.”

Oracle closed yesterday at $32.14.