Jefferies Maintains ORCL Rating; Raises PT To $37

Jefferies maintains its Buy rating on Oracle Corporation ORCL and raises its PT from $35 to $37. “ORCL beat us and Street ests across all major metrics. License growth (+21% Y/Y v our 15% Y/Y), Support revs (+12% Y/Y v our +9%), HW GM (53% v our 50%) were stand-outs. NG EPS beat by $0.05 or $0.03 ex a one-time item,” Jefferies writes. “FX was a bit easier than forecast, at a 2pp headwind v the 3pp estimate on license and 4pp on total revs. We believe organic growth is running in the low-teens; impressive given the size of the business and suggests the integrated system message is resonating.” Oracle currently trades at $30.27.