Analysts at CLSA Americas pegged Oracle Corporation ORCL at an Underperform with a $44 price target – just 1 percent above current price. CLSA left revenue forecasts unchanged, but slashed its earnings per share estimates to $0.86 from $0.92 for Q4 2015. That $0.06 cut in Q4 estimates converted to a $0.05 reduction in full-year EPS, which CLSA pegs at $2.86 from $2.91. CLSA also reduced expectations for 2016 earnings, trimming forecasts to $2.99 from $3.02.
The analysts' $44 price target is from a 13x PE multiple, adding back in Oracle's net cash of $2.56 per share. Year to date, Oracle has slipped 3.4 percent. In the prior 52 weeks, Oracle gained 11.4 percent, underperforming the S&P 500 by 4.5 percent. That entire underperformance has come this year.
At its Q3 earnings report in late March, Oracle increased its quarterly dividend by $0.03 to $0.15. The company said it expects to make $1 billion by the end of the year.
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