ORCL - Oracle downgraded to sector weight at KeyBanc as Cerner deal 'non-strategic'

Oracle (NYSE:ORCL) has been downgraded to sector weight from overweight at KeyBanc Capital Markets as the company's deal to acquire Cerner (NASDAQ:CERN) is seen as "accretive" to earnings, but it's a "non-strategic" fit. Analyst Michael Turits noted that the deal, which Oracle (ORCL) is paying roughly $28 billion in cash for, should help the IT giant's earnings, its top-line growth and help it push further into healthcare, it could help the company lose focus. It's not seen as strategic as enterprise SaaS, database and cloud. In addition, Turits said with $23 billion on the balance sheet, the deal could result in more debt or financing that "could instead have been used for stock buybacks, to finance more strategic acquisitions, or fund cloud capex," he added. Oracle (ORCL) shares are slightly higher on Tuesday morning to $91.91, after falling more than 5% on Monday following the announcement. Oracle (ORCL) has jumped more than 43% year-to-date. As such, Oracle

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Oracle downgraded to sector weight at KeyBanc as Cerner deal 'non-strategic'