Morgan Stanley upgraded its investment recommendation on Oracle (ORCL) to outperform.
Analyst Charles Phillips says the early shipment of Oracle's 9i database, the validation of its customer relationship management (CRM) product by a major market research firm, and CRM customer references could help the company beat expectations. Phillips still thinks his down 9% year-to-year license revenue estimate is a more likely scenario than the company's flat growth guidance. The analyst adds that investors don't buy the flat revenue forecast and are bracing for something worse. According to Phillips, Q4 will be tough for the company. He still sees EPS of $0.14 for Q4 and $0.52 for all of fiscal 2002 (May) and revenues of $3.4 billion for Q4 and $12.2 billion for the full fiscal year.