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Wunderlich: 'Come Sail Away' With Oracle, Initiates At Hold

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In a report published Tuesday, Wunderlich analyst Rob Breza initiated coverage of Oracle Corporation (NYSE: ORCL) with a Hold rating and $47 price target.

The analyst believes that "Oracle is aggressively transforming the cloud with its Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and Software-as-a-Service (SaaS) offerings," adding that "Oracle's core database beginnings have evolved across almost all elements of the enterprise IT stack, from its hardware and software products to SaaS as its next pinnacle to conquer."

The company's total addressable market (TAM) opportunity is estimated by third-party researchers to be about $1.2 trillion, with the constant currency growth rate estimated at 4.8 percent.

According to the Wunderlich report, "Oracle's ability to integrate all components, from storage to database and all the way to applications, creates an inherent advantage for all subscribers. Oracle remains the world's most popular enterprise database with approximately 45 percent of the database market, forcing other vendors to interoperate. Today's world is creating more data than ever and has become increasingly more dependent upon it, which we believe should bode well for the future."

However, the company reported its F3Q15 results with weak revenue and flat EPS growth. The analyst believes that the revenue weakness was due to strong FX headwinds, which impact revenue growth by 6 percent.

The analyst expects the stock to see upside going forward.

Latest Ratings for ORCL

Jan 2017Wells FargoInitiates Coverage OnOutperform
Sep 2016NomuraMaintainsBuy
Sep 2016RBC CapitalMaintainsOutperform

View More Analyst Ratings for ORCL
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Posted-In: Rob Breza Vetr Wunderlich SecuritiesAnalyst Color Price Target Initiation Analyst Ratings


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