Piper Jaffray Reiterates an 'Overweight' on Oracle (ORCL); Remains a Top Pick
ORCL Hot Sheet
Rating Summary:11 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
Piper Jaffray reiterates an 'Overweight' rating on Oracle Corporation (Nasdaq: ORCL), raises price target to $30.
Piper analyst says, "We reiterate ORCL as our top pick in the large-cap arena, and raise our price target to $30 based upon multiple checks that indicate Sun exceeded expectations in its last stand-alone quarter (Dec-09). Additionally, we update our model to incorporate Sun, and now anticipate $1.87 PF EPS in FY11. We maintain our uniquely bullish stance on the Sun acquisition, and foresee Oracle becoming a beat and raise story in 2010, as growth opportunities, cost saving synergies and higher accretion from Sun are achieved during the next few quarters...Multiple checks indicate a strong finish for Sun. Our checks, along with positive commentary from QLogic's earnings call last week, indicate Sun performed better in its December quarter than the Street currently anticipates. Although revenue recorded prior to the close of the acquisition may not materially flow into Oracle's Q3 (Feb.), we believe positive momentum from Sun runs counter to the Street's expectations and may mark a trend change relative to Sun's recent string of very weak quarters. Oracle will receive the benefit of one month's contribution from Sun in Q3, and we suspect the commentary may reveal that pent-up demand in the Sun ecosystem is starting to be released as customers gain incremental comfort with the commitment level of Sun's new ownership."
"We have updated our model to include Sun and now expect $25.9B/$1.59 (previous $23.7B/$1.59) and $33.3B/$1.87 (previous $25.1B/$1.74) for FY10 and FY11 revenue and EPS, respectively...Oracle remains our top pick in the large-cap arena and we maintain a uniquely bullish stance on the Sun acquisition."
To see all the upgrades/downgrades on shares of ORCL, visit our Analyst Ratings page.
Piper analyst says, "We reiterate ORCL as our top pick in the large-cap arena, and raise our price target to $30 based upon multiple checks that indicate Sun exceeded expectations in its last stand-alone quarter (Dec-09). Additionally, we update our model to incorporate Sun, and now anticipate $1.87 PF EPS in FY11. We maintain our uniquely bullish stance on the Sun acquisition, and foresee Oracle becoming a beat and raise story in 2010, as growth opportunities, cost saving synergies and higher accretion from Sun are achieved during the next few quarters...Multiple checks indicate a strong finish for Sun. Our checks, along with positive commentary from QLogic's earnings call last week, indicate Sun performed better in its December quarter than the Street currently anticipates. Although revenue recorded prior to the close of the acquisition may not materially flow into Oracle's Q3 (Feb.), we believe positive momentum from Sun runs counter to the Street's expectations and may mark a trend change relative to Sun's recent string of very weak quarters. Oracle will receive the benefit of one month's contribution from Sun in Q3, and we suspect the commentary may reveal that pent-up demand in the Sun ecosystem is starting to be released as customers gain incremental comfort with the commitment level of Sun's new ownership."
"We have updated our model to include Sun and now expect $25.9B/$1.59 (previous $23.7B/$1.59) and $33.3B/$1.87 (previous $25.1B/$1.74) for FY10 and FY11 revenue and EPS, respectively...Oracle remains our top pick in the large-cap arena and we maintain a uniquely bullish stance on the Sun acquisition."
To see all the upgrades/downgrades on shares of ORCL, visit our Analyst Ratings page.
You May Also Be Interested In
- Oracle Honored With TM Forum Industry Leadership Award at Management World 2012
- Nomura Securities Sees Trends Continuing To Be Difficult at Wet Seal, Inc. (WTSLA); Cutting FY12/13 Estimates
- Jury finds Google (GOOG) didn't infringe Oracle (ORCL) patents for Java -Bloomberg
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Piper JaffraySign 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!
