Nomura Securities Maintains a 'Buy' on Oracle (ORCL); Q2 Preview; Guidance May Be a Bit More Cautious Going Into 2012
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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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Nomura Securities maintains a 'Buy' on Oracle (NASDAQ: ORCL) price target of $34.00.
Nomura analyst, Rick Sherlund, said, "Oracle’s Fs 2Q (Nov) is likely in-line, while guidance for 2012 will likely be a bit softer. Oracle will report its fiscal 2Q (Nov) results after the market close on Tuesday, December 20th. We think IT spending has held up well again this quarter. The guide for Q3 will be critical to the stock. We would expect to see a bit more conservative guidance on a difficult y/y compare given the slower growth expected for IT budgets next year. Oracle is trading at 12x our CY2012 EPS of $2.44, below the applications peer group at 13x."
"For Q2 software license growth, we have modeled 14% y/y growth, at the higher end of the guidance range of 6% to 16% and above the Street consensus of 10%. We look for pro-forma EPS of $0.58, up 13% from $0.51 last year, while the Street is at $0.57."
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 $29.87 yesterday.
Nomura analyst, Rick Sherlund, said, "Oracle’s Fs 2Q (Nov) is likely in-line, while guidance for 2012 will likely be a bit softer. Oracle will report its fiscal 2Q (Nov) results after the market close on Tuesday, December 20th. We think IT spending has held up well again this quarter. The guide for Q3 will be critical to the stock. We would expect to see a bit more conservative guidance on a difficult y/y compare given the slower growth expected for IT budgets next year. Oracle is trading at 12x our CY2012 EPS of $2.44, below the applications peer group at 13x."
"For Q2 software license growth, we have modeled 14% y/y growth, at the higher end of the guidance range of 6% to 16% and above the Street consensus of 10%. We look for pro-forma EPS of $0.58, up 13% from $0.51 last year, while the Street is at $0.57."
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 $29.87 yesterday.
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