Wedbush Remains Sidelined on Oracle (ORCL) Following Analyst Event
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Wedbush reiterated a Neutral rating and $41.00 price target on Oracle (NYSE: ORCL) following the company's analyst meeting and industry checks. At the financial analyst meeting, Chairman Larry Ellison made a convincing case that competition for Oracle workloads “won’t be a fair fight.” The company also highlighted its progress in SaaS & PaaS and its traction with an “accelerated buying experience” for cloud customers.
Analyst Steve Koenig commented, "We’re incrementally more positive on ORCL shares following its analyst meeting and our industry checks. ORCL’s EPS appear to be stabilizing Y/Y, and trading multiples are relatively low. Our customer and partner conversations (and commentary from co-CEO Mark Hurd) suggest ORCL has expanded its use of unlimited license agreements (ULAs) to lock in database customers and prevent bring-your-own-license (BYOL) of Oracle to Amazon AWS (AMZN-OP), which could stem the decline in database sales, at least in the near term. Although ORCL likely faces long-term challenges to its database business based on new application development shifting to AWS, we think the company has many levers to sustain its earnings power in coming quarters and years. Also, ORCL has a credible strategy for keeping Oracle-based premise workloads and earning additional revenue from hosting these workloads on its IaaS platform."
Shares of Oracle closed at $39.51 yesterday.
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Related EntitiesMark Hurd, Larry Ellison, Earnings
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