Morgan Stanley raises the target price of Oracle to $175, maintains a 'Market Perform' rating

Golden Ten Data on December 11, Morgan Stanley issued a research report pointing out that Oracle (ORCL.N)'s remaining performance obligations (RPO) fell from $99 billion to $97 billion in the second fiscal quarter, reflecting a year-on-year decrease of about 11% in order volume during the period, of which the proportion of orders based on the current remaining performance obligations (cRPO) also decreased from 16% to 13%. As the order volume turned from rising to falling, and the fiscal second quarter performance and fiscal third quarter guidance were lower than market expectations, Da Mo expects investors to focus back on revenue performance, and the potential foreign exchange risk increases, and believes that it will be challenging for management to achieve the double-digit RISE target. At the same time, due to the increase in capital expenditure, Da Mo estimates that its free cash flow level will continue to be under pressure, and the stock price may remain in the range, maintaining its “in sync” rating, and raising the target price to $175 from $145.