Zelnick also noted how Oracle has successfully acquired more than 60 companies since 2004. "ORCL is our favorite aggregation play. We particularly like companies that can parlay dominant market positions into adjacencies to capture incremental wallet share," he wrote. "This has been a consistent strategy for ORCL over the years … and cloud is just the latest chapter." Oracle shares were up slightly after Tuesday's market open following the report. — CNBC's Michael Bloom contributed to this story.