UPDATE: Deutsche Bank Raises PT on Oracle to $29
Deutsche Bank reiterates a Hold rating on Oracle (NASDAQ: ORCL) and adjusts its price target from $28 to $29.
Deutsche notes, “ORCL reported rev of $10.95b just above our/street est of $10.89b, and EPS of $0.82 vs our/street est of $0.77/$0.78. Rev beat slightly (org rev growth of 0%), as h/w sales declined lesser than expected ( -16% vs expectation of -25%), and inorganic strength in applications (6% est. org growth y/y). EPS beat was aided by lower tax rate and share count. Op margins improved to 50% (last time they hit 50% was in first full qtr after Sun closed, in 4Q09), and could see further upside in FY13. 1Q13 guidance was below our/Street est, implying a range of - 2% to -1% org rev growth y/y. Reiterate Hold, adjusting PT to $29 (from $28) for better cash flow performance.”
ORCL closed at $27.12 on Monday.
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