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UPDATE: Stifel Reiterates on Oracle on Buying Opportunity

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In a report published Wednesday, Stifel analyst Brad Reback reiterated a Buy rating on Oracle (NYSE: ORCL), and raised the price target from $40.00 to $43.00.

In the report, Stifel noted, “ORCL delivered another healthy quarter, but its headline results were negatively impacted by currency headwinds, a $110M foreign-currency re-measurement-loss related to Venezuela, and the ongoing transition to the cloud (which impacted apps license revenue growth). While these unique-items caused ORCL to fall slightly shy of our and Street expectations and pressured the shares after-hours, once normalizing for these items, we believe the quarter was solid across-the-board.

"In particular, we were pleased to hear adoption for ORCL's core-database solutions remains strong, uptake of its engineered systems is ramping and grew over 30%, and demand for its cloud solutions is increasing (bookings climbed 60%). Additionally, hardware exceeded Street expectations and grew for the first time in over 10 quarters, as engineered systems are becoming a more meaningful component (1/3) of the overall mix.

"Looking ahead, we believe ORCL will continue to successfully transition to the cloud and think it can sustain growth in its hardware business. We also believe management has addressed many of its recent sales-execution issues and should benefit over the next several quarters from its expanded distribution, productivity gains, and refreshed product-set.”

Oracle closed on Tuesday at $38.84.

Latest Ratings for ORCL

DateFirmActionFromTo
Sep 2014Deutsche BankDowngradesBuyHold
Sep 2014BarclaysMaintainsOverweight
Sep 2014MKM PartnersInitiates Coverage onNeutral

View More Analyst Ratings for ORCL
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Posted-In: Brad Reback StifelAnalyst Color Price Target Analyst Ratings

 

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