Macquarie Maintains a 'Neutral' on Oracle (ORCL); Accumulate Ahead of Q4 Earnings

June 14, 2012 8:06 AM EDT Send to a Friend
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Price: $41.63 +0.12%

Rating Summary:
    23 Buy, 15 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 8 | Down: 13 | New: 4
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Macquarie maintains a 'Neutral' on Oracle (NASDAQ: ORCL) price target of $33.00.

Analyst, Brad Zelnick, said, "We recommend buying Oracle shares heading into F4Q earnings due out on June 21st after the market close. We expect revenue results to be broadly in line with FX adjusted guidance and see margin/EPS upside from efficiencies in sales compensation. At a near trough 0.85 relative P/E multiple vs. the S&P 500 and a 23% total return to our target, we believe the risk/reward is quite compelling."

"We model F1Q license revenue -59% q/q (organic) vs. the -60% 5-yr average and we are lowering our F1Q EPS to $0.50 from $0.52 largely for changes in FX...Our F4Q12 and F1Q13 revenue are updated for these changes and decrease to $10,770m and $8,379m from $10,864m and $8,578m, respectively."

For an analyst ratings summary and ratings history on Oracle click here. For more ratings news on Oracle click here.

Shares of Oracle closed at $27.02 yesterday.




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