Oracle Has 50% Upside--So Why Won't Morgan Stanley Say Buy?

This article first appeared on GuruFocus. Financials company Oracle (ORCL, Financials) has a unique Wall Street setup: Morgan Stanley expects 50% upside but doesn't advocate purchasing the shares.Despite Oracle's better performance, analyst Sanjit Singh maintained an Equal Weight rating and $210 price target.What Oracle receives from its massive AI infrastructure investment is the main concern. Oracle Cloud Infrastructure revenue rose 121% year over year in the fiscal first quarter.However, establishing enough capacity to meet that demand involves massive cash, focusing Oracle's development on margins and returns. Singh said he wanted to see further gross margin stabilization efforts. Signs are promising.