Oracle (ORCL) Ripe to Improve Payout Ratios

Goldman Sachs today maintained a Buy rating on Oracle (NASDAQ: ORCL) with a price target of $42.00. Analyst Heather Bellini sees opportunity for increased buyback and dividends.

"ORCL's shares have lagged YTD vs. large cap tech peers with higher dividend yields and payout ratios; ORCL also has one of the lowest payout ratios of the top 25 companies in the S&P by market cap," said analyst Bellini.

"ORCL has demonstrated significant cash flow generation capacity, with the question going forward being how much and in what manner it will choose to return cash to shareholders. However, given the strong performance of high dividend yielding stocks to date, we would not be surprised if ORCL looked to raise their dividend payout ratio and as such, yield," added the analyst.

For an analyst ratings summary and ratings history on Oracle (NASDAQ: ORCL) click here. For more ratings news on Oracle click here.

Shares of Oracle closed at $33.35 yesterday.

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