Oracle (ORCL) PT Raised to $48 at Deutsche Bank (Earlier)

Deutsche Bank maintained a Buy rating on Oracle (NASDAQ: ORCL) and raised its price target to $48.00 (from $45.00). Analyst Karl Keirstead discussed its 12c database software product.

"One key component to the ORCL story is the pending ramp of the new 12c database software product, the first major new database release since 11g was launched in '07. The 12c product has two key feature additions, a multi-tenant layer (which went GA in the fall of 2013) and an in-memory option (expected to be out later this summer). In our view, Oracle shares include only a modest premium for the potential 12c revenue lift, in part because ORCL itself has been tempering near-term expectations and because feedback from large beta customers is hard to obtain. Last week we reached out to three CIOs and 12c evaluation teams at F500 companies and wanted to pass along their feedback," said Keirstead.

"The early feedback was positive and one beta customer claimed that its spending with Oracle could ultimately increase by 5%-10% if both 12c options deliver on their promise. We heard that 12c offered material improvements to the current 11g database and that among other large enterprises there was lots of tire-kicking. The feedback about the multi-tenant option focused on the consolidation cost savings, including less system and DBA resources to keep the database environment optimally configured. In terms of the in memory option, the 12c query performance improvement achieved by one beta customer was “impressive” and was on par with SAP HANA for most (not all) queries. One customer flagged the potential to reduce their spending with SAP HANA (this opportunity is greatest in cases where HANA is sold into Oracle environments)," he added.

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 $31.25 yesterday.

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