In a report released today, Brian Schwartz from Oppenheimer reiterated a Hold rating on Oracle Corp (ORCL – Research Report). The company’s shares closed yesterday at $53.05, close to its 52-week high of $53.47.
“We view Oracle’s F3Q results as a disappointment. Most disconcerting is that the core infrastructure business and CapEx have declined YTD, and this should raise a red flag for investors on Oracle’s momentum in cloud computing and possible share losses when coupled with the diminished cloud business transparency. Bottom Line: While we commend the capital returns to shareholders via buybacks and a higher dividend, we think F3Q results are unlikely to change the current narrative on Oracle, which is that the company is facing challenges in trying to mitigate infrastructure share losses from multifaceted headwinds. We believe investors can achieve greater upside from owning other large-cap names in our SaaS/Applications universe (such as NOW, etc.). We reiterate our Perform rating on ORCL.”
According to TipRanks.com, Schwartz is a top 25 analyst with an average return of 28.4% and a 77.3% success rate. Schwartz covers the Technology sector, focusing on stocks such as Instructure Inc, Salesforce.com, and MiX Telematics.
The word on The Street in general, suggests a Hold analyst consensus rating for Oracle Corp with a $53.14 average price target, representing a 0.2% upside. In a report issued on March 11, Barclays also maintained a Hold rating on the stock with a $55 price target.
Based on Oracle Corp’s latest earnings release for the quarter ending November 30, the company reported a quarterly revenue of $9.56 billion and net profit of $2.33 billion. In comparison, last year the company earned revenue of $9.77 billion and had a GAAP net loss of $4.02 billion.
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