Investors Cheer Oracle's (ORCL) Q4 Earnings, Analysts Remain Bullish

June 24, 2009 12:16 PM EDT

Traders are applauding Oracle's (Nasdaq: ORCL) Q4 results today, boosting its shares by about 9%. The tech-bellweather reported better-than-expected EPS and sales, and also issued in-line Q1 guidance.

This morning, analysts seem to be responding similarly to the quarterly results:

• Deutsche Bank called Oracle's Q4 numbers "strong" but reiterated its Hold rating. The firm also raised its price target on Oracle from $18 to $19. Deutsche attributed the solid quarter to foreign exchange tailwinds and strong performance in the Asia Pacific region.
  
• Goldman Sachs reiterated its Buy rating and $25 price target, which represents potential upside of about 16% from current levels. The firm raised its FY10 EPS estimate from $1.51 to $1.52, which compares to the Street estimate of $1.49, and its FY11 estimate from $1.60 to $1.65, versus the consensus of $1.63. Goldman also initiated a FY12 adj-EPS estimate of $1.78.
  
• Piper Jaffray called Oracle's Q4 results "highly impressive", reiterating a Buy rating, Alpha listing and $24 price target. The firm said Oracle's results showed "signs of superior EPS resiliency and market share gains" and also noted that Q1 is now "de-risked this year".
  
• Wachovia maintained its Outperform rating and $23-$25 valuation range. The firm raised its Q1 non-GAAP EPS estimate from $0.27 to $0.30, its FY10 estimate from $1.45 to $1.54 and its FY11 estimate from $1.67 to $1.76. Wachovia said, "While Oracle’s significant international and financial services exposure is likely to be a negative over the next several quarters, we view Oracle as one of the most defensive names in our coverage space."
  
• Benchmark Capital maintains a Hold rating on Oracle, saying the results were "good but boosted by currency". The firm believes there has not been "a material change in the short-term revenue picture" and sees the product release cycle over the next year unlikely to alter any fundamental aspects of the business.
  
• Davenport maintained a Buy rating while raising its price target from $22 to $26. The analyst says he would continue to be a buyer of Oracle shares as "the company is better positioned to weather the downturn in the global economy than most technology companies due to its stable and recurring software
  maintenance revenue, which contributes 51% of firm revenue."

UPDATE: Click here to see some highlights from the company's Q4 conference call.

Related Categories

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Related Entities

• Piper Jaffray
• Deutsche Bank
• Piper Jaffray Alpha List
• Davenport
• Wachovia
• Benchmark Capital

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