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UPDATE: Wedbush Initiated Oracle at Neutral on Tough Revenue Expectations

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Wedbush initiated coverage on Oracle (NASDAQ: ORCL) with a Neutral rating and a $36 price target.

Wedbush noted, "We believe Oracle is a large, liquid, and relatively defensive software investment due to its heavy mix of maintenance revenue, broad product portfolio, and diverse customer base. … Relative to consensus, we expect ORCL to be somewhat challenged on revenues, but to meet or beat on EPS going forward. By our calculation, consensus estimates imply about 100 bps of operating margin expansion in FY14, on revenue growth of 7%. This level of revenue growth seems ambitious given ORCL's maturity, but we think ORCL should beat consensus margin forecasts based on good cost control and operating leverage."

Oracle closed at $32.03 on Thursday.

Latest Ratings for ORCL

DateFirmActionFromTo
Jan 2016BMO CapitalInitiates Coverage onMarket Perform
Jan 2016Evercore ISI GroupUpgradesHoldBuy
Nov 2015Goldman SachsUpgradesBuyConviction Buy

View More Analyst Ratings for ORCL
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Posted-In: WedbushAnalyst Color Initiation Intraday Update Analyst Ratings

 

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