Jefferies Becomes Bullish on Oracle's (ORCL) Q4 Results, Sees Upside Likely
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Price: $150.52 -3.65%
Rating Summary:
48 Buy, 21 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
48 Buy, 21 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Jefferies is reiterating its Buy rating and $38 price target on shares of Oracle (NASDAQ: ORCL) as the company looks to finish off its 2011 fiscal year strong.
The firm forecasts that ORCL will report $10.82 billion in revenue and EPS of $0.72 for Q4, which is slightly ahead of the Street. It also believes that an upside to its new estimates would not be that surprising given market check and current trends.
ORCL has continued to benefit from the rebound in enterprise application software spend and from software pull-through related to integrated system sales. As a result, the firm anticipates that there maybe upside risk to its new license estimate of 18% which is already near the top end of the company's guidance of 9%-19%.
Jefferies is lowering its FY11 and FY12 EPS estimates by $0.01 to $2.18 and $2.40.
An analyst at Jefferies commented, "We believe ORCL hit a market acceptance inflection point with Exadata during the quarter. We think the company saw an acceleration in systems sales and an increase in its related business pipeline. Exalogic appears to be in very early days, though its long-term prospects are promising given its interoperability with Exadata."
For more ratings news on Oracle click here and for the rating history of Oracle click here.
Shares of Oracle closed at $33.04 yesterday.
The firm forecasts that ORCL will report $10.82 billion in revenue and EPS of $0.72 for Q4, which is slightly ahead of the Street. It also believes that an upside to its new estimates would not be that surprising given market check and current trends.
ORCL has continued to benefit from the rebound in enterprise application software spend and from software pull-through related to integrated system sales. As a result, the firm anticipates that there maybe upside risk to its new license estimate of 18% which is already near the top end of the company's guidance of 9%-19%.
Jefferies is lowering its FY11 and FY12 EPS estimates by $0.01 to $2.18 and $2.40.
An analyst at Jefferies commented, "We believe ORCL hit a market acceptance inflection point with Exadata during the quarter. We think the company saw an acceleration in systems sales and an increase in its related business pipeline. Exalogic appears to be in very early days, though its long-term prospects are promising given its interoperability with Exadata."
For more ratings news on Oracle click here and for the rating history of Oracle click here.
Shares of Oracle closed at $33.04 yesterday.
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