Oracle (ORCL) Given Buy Rating at Goldman Sachs

Goldman Sachs resumes coverage on Oracle (NASDAQ: ORCL) with a Buy rating and $40 price target.

The firm expects the company's cloud portfolio to drive upside and is modeling FY2012 revenue growth slightly north of 10%, versus the consensus of 8.5%. Upside will be driven by Exadata and Exalogic ramp, they note.

Goldman also said Oracle is gaining share in the data center, while large-cap peers struggle to maintain relevancy. Offerings from the company position it strongly to benefit from "big data" secular tailwinds.

The consensus view of 130bp of margin expansion in FY12 may prove conservative, according to the firm. They expect the comapny to maintain an EPS growth rate of 15-20%.

Results in late-September and announcements of additional cloud solutions at OpenWorld in October are near-term catalysts for the shares.

For more ratings news on Oracle click here and for the rating history of Oracle click here.

Shares of Oracle closed at $33.14 yesterday.

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