Jefferies Trims Numbers on Oracle (ORCL), Keeps Buy Rating

Jefferies reiterated its Buy rating on Oracle (NASDAQ: ORCL) but trimmed estimates and its price target from $38 to $35.

The firm notes, "We like ORCL here for 3 reasons: i) We think F1Q12 numbs will be ok and although we did modestly cut FY12 and FY13 ests, we don't think ests will be revised down as much as feared; ii) the stock has defensive characteristics with 50% recurring rev and op margin that is still almost 200bp below prior peak; and iii) valuation, given the stock trades on 11X our FY12 est versus 10X NTM at the 2009 trough and 15X the 5-yr historical average."

The firm cut FY12 EPS from $2.41 to $2.36 and FY13 from $2.73 to $2.63.

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

Shares of Oracle closed at $26.75 yesterday.

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