Oracle (ORCL): Growth Inflection Pushed Out Until F18 - Cowen
- Top 10 News for 10/24 - 10/28: AT&T (T), Time Warner Make it Official; Margins Hamper Apple's Q4; Mergers Aplenty
- Wall St. falls as FBI to review more Clinton emails
- Clinton email problem resurfaces as FBI announces review
- ExxonMobil (XOM) Tops Q3 EPS by 5c; CapEx Light of Views
- Baker Hughes (BHI), General Electric (GE) in Partnership Talks, Not Merger Talks
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
Cowen analyst, Derrick Wood, reiterated his Outperform rating on shares of Oracle (NYSE: ORCL) but recognized that there are several new factors pressuring EPS. Software growth was solid and came in at the high-end of guidance & GM expansion elements are well intact; but the combination of weakening hardware and transitory factors below the operating line (higher tax rates, new debt burden w/o N closure) are spoiling the EPS growth recovery.
Confidence in cloud traction remains high & EPS growth is expected to continue in FY17, but an inflection is not likely to happen till FY18. No change to the price target of $46 which represents a ~16x P/E multiple.
Shares of Oracle closed at $40.86 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Cowen Affirms Amazon (AMZN) at 'Outperform'; Thesis Unchanged Following Q3 Report
- Advanced Micro Devices (AMD) on Watch Amid Rumors Involving Oracle (ORCL)
- Cirrus Logic (CRUS) PT Raised to $65 at Needham & Company
Create E-mail Alert Related CategoriesAnalyst Comments, Earnings
Related EntitiesCowen & Co
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!