Wedbush Remains Sidelined on Oracle (ORCL) Following Analyst Event
- Record-setting rally pushes on as S&P ends week up 3 percent
- Trump's Cohn Pick Most Bullish Sign Yet for Banks - Cowen
- Unusual 11 Mid-Day Movers: (IDXG) (INVN) (EBS) Higher; (SCON) (DTEA) (DLTH) Lower (more...)
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
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.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Instinet Reiterates Buy on Oracle (ORCL) Ahead of 2Q Earnings
- Instinet Reiterates Buy on Oracle (ORCL) Ahead of 2Q Report
- Argus Downgrades Sonoco Products (SON) to Hold
Create E-mail Alert Related CategoriesAnalyst Comments
Related EntitiesMark Hurd, Larry Ellison, Earnings
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!