Oracle Corporation Upgraded by D.A. Davidson

D.A. Davidson upgraded Oracle Corporation ORCL to Buy on Monday and maintained at $47 Price Target.

Oracle recently held an analyst day where, according to analyst Jack Andrews, the company “introduced a slew of new products (approximately 130) across all lines of business. In our view, the overriding theme of the product introductions centered around ease of use and democratizing Oracle’s solutions across a greater pool of potential users. We believe this is the right approach as line of business managers are increasingly playing a role in overall technology purchasing decisions.”

Other analysts have had mixed reviews coming out of the same meetings.

Andrews noted that “Co-CEO Mark Hurd quantified the magnitude of this impact at the analyst day, remarking that, if Oracle's entire software support base of customers changed over to the company’s SaaS solutions, $1 of spending on Oracle’s solutions today will translate into $3 of spending going forward.”  Andrews was skeptical that such performance would be possible due to Oracle's existing market share.

Andrews was “impressed by the multitude of new products” and he believed that Oracle “is very well positioned to leverage its substantial resources to capitalize on the shift towards the cloud, cloud revenues today comprise only 4 percent of total revenues, as the company is early in this transition.”

Oracle Corporation recently traded at $38.89, up 0.31 percent.