ORCL: WFC Resumes Coverage with Outperform (CdeR)

Wells Fargo is resuming coverage of ORCL with an Outperform rating and valuation range of $29-$31. Valuation based on 13-14x FY12 EPS of @2.20.

WFC: ORCL is one of the plays in the data center transformation theme and can leveragfe the Sun acquisition to take a larger share of IT spend. Forecasting operating margins to expand from 41.9% in FY11 to 43.9% in FY13. Revenue estimate for FY2011 is $34.1B reflecting growth of 26% and we estimate EPS for FY11 of $1.93, up 33% from FY2010.