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Goldman Sachs Remains Calm as Oracle (ORCL) Faces Skeptical Market

March 21, 2013 12:05 PM EDT Send to a Friend
Get Alerts ORCL Hot Sheet
Price: $41.27 -0.89%

Rating Summary:
    23 Buy, 16 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 6 | Down: 14 | New: 24
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Yesterday Oracle (NASDAQ: ORCL) stock was slammed after it reported disappointed Q3 results. This led to several analyst downgrades. Analysts at Goldman Sachs decided not to join the pity-party, and maintained a Buy rating with a $39 price target.

"The key question is how long these execution challenges will last as Oracle added 4K sales heads in the last 18 months," said analyst Heather Bellini. "Although management commented that they expect the challenges to be fixed relatively quickly, we believe concerns about organic constant currency license growth will remain in the near-term."

However, Bellini noted that Oracle usually does well in F4Q.

"We have never seen Oracle not enjoy a solid F4Q, with the company outperforming the midpoint of its license range in each of the past five years, and the high end of its license guidance range four times out of the past five years," said the analyst.

"Furthermore, we note that historically, buying Oracle's shares after a decline post earnings has resulted in solid returns."

For an analyst ratings summary and ratings history on Oracle (NASDAQ: ORCL) click here. For more ratings news on Oracle click here.

Shares of Oracle closed at $35.77 yesterday.




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