UPDATE - Nomura Securities Initiates Coverage on Oracle (ORCL) with a Buy; A Best-Positioned Vendors for Vertical Integration

UPDATE - Nomura Securities initiates coverage on Oracle (Nasdaq: ORCL) with a Buy rating. PT $34.

Nomura analyst, Rick Sherlund, said, "ORCL is one of the best-positioned vendors for vertical integration, and we find a compelling risk / reward given its integrated stack offering, increasing customer traction of its Exadata and Exalogic systems, margin expansion opportunities, and current valuation near the low end of its 5-year range. Specifically, we look for the company’s hardware operations to drive margin upside, and our analysis points to higher hardware support attach rates that should double from current levels. Oracle’s OpenWorld 2011 in early October should act as a near-term catalyst given expected positive customer testimonials on its new product offerings. The stock currently trades at 11.1x FY’12 ests, the low end of its 5-yr range. For FY’12, we estimate total revs and EPS of $39.65bn / $2.42, above Street at $38.91bn / $2.40."

To see more ratings changes on ORCL, Click Here

You May Also Be Interested In

• Oracle (ORCL) Introduces New AI Capabilities to Help Organizations Boost Sales
• Bernstein SocGen Group Starts General Motors (GM) at Outperform
• DA Davidson Starts Napco Security Technologies, Inc. (NSSC) at Buy