Nomura Securities Maintains a 'Buy' on Oracle (ORCL); Q3 Review

Nomura Securities maintains a 'Buy' on Oracle (NASDAQ: ORCL) price target of $32.00.

Analyst, Rick Sherlund, said, "Oracle reported license growth of 7% for fiscal Q3 (Feb), not great by historical standards, but a relief after the disappointing Q2, and ahead of our 4% and Street 3% estimates. Guidance was uninspiring with 4Q (May) license revenue guide of -2% to +8% (including a 3% FX headwind), is 2% below prior consensus estimates, at the midpoint. We have raised our Fiscal 2012 EPs estimate from $2.36 to $2.42 reflecting mostly the upside from Fiscal Q3. For 2013, we raised our estimate from $2.57 to $2.59. Stock could be vulnerable in the next few quarters, to competitive concerns, and until it can demonstrate a greater presence in the SaaS market. Shares are selling at 12.0x our calendar 2012 EPS estimate of $2.51 or 10X EV/uFCF. We maintain our rating into a seasonally strong May quarter, but investors will likely need to be patient."

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 $30.10 yesterday.

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