Nomura Securities Maintains a 'Buy' on Oracle (ORCL); Missing on All Cylinders

Nomura Securities maintains a 'Buy' on Oracle (NASDAQ: ORCL) price target lowered from $34 to $32.

Nomura analyst, Rick Sherlund, said, "Oracle reported disappointing second (Nov) fiscal quarter results that were well below consensus expectations across the board. Of the two key metrics, new software license revenue of $2.05b was up only 3% y/y versus the Street’s estimate of 11% and hardware was down 14% vs our estimates of down 5%. EPS of $0.54 missed our and consensus expectations of $0.58 and $0.57, respectively. Management noted that IT budgets were not reduced, rather the sales cycle increased as additional levels of approval were required, which is typical of a macro slowdown. We believe there were likely some execution issues at Oracle that may have made this worse for ORCL than other companies that have reported so far. We reduced our 2012E EPS from $2.44 to $2.36 and 2013E EPS from $2.73 to $2.57. We believe our sharp estimate reductions and likely share price decline at the open will effectively de-risk ORCL shares."

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 $29.17 yesterday.

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