UPDATE: Goldman Sachs Reiterates Buy Rating, Raises PT on Oracle Corporation
In a report published Wednesday, Goldman Sachs Group reiterated its Buy rating on Oracle Corporation (NASDAQ: ORCL), and slightly raised its price target from $36.00 to $37.00.
Goldman Sachs noted, “License performance was the highlight of the quarter. After guiding to 5-15% reported license growth (consensus was +9%) ORCL posted yoy growth of 17%, with currency an as expected 100 bp headwind. The last time ORCL exceeded the high end of its license guidance range was in August 2011. On a qoq basis, 51% license growth was slightly below what was experienced in the November 2009 and November 2010 periods (61% and 55% qoq respectively). On an organic basis, we estimate constant currency yoy license growth was 11% yoy in F2Q13 versus the 3% in F1Q13, as we believe acquisitions contributed $150mn in license sales in the quarter. As investors had widely expected, hardware disappointed, with a decline of 23% yoy below the down 8-18% guidance. We view ORCL's results as having positive implications for other software names.”
Oracle Corporation closed on Tuesday at $32.88.
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