UPDATE: Goldman Sachs Starts Oracle (ORCL) at Sell
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Goldman Sachs analyst Kash Rangan initiates coverage on Oracle (NYSE: ORCL) with a Sell rating and a price target of $60.00.
The analyst comments "Oracle’s focus for several years now has been on organic development and creating tighter integration and innovation within its IaaS, PaaS, SaaS stack. The company has not made major acquisitions for several years. The net result of this strategy has been a steady deceleration in revenue growth from 4% in FY14-15 to 0.3% in FY20. Unlike other cloud transition stories, Oracle’s move to the cloud has taken much longer than expected. In fact, the company backed away from moving its highly profitable database business to database as a service a couple of years ago, instead offering bring your own license (BYOL) to customers. As a result, impact on operating margins has been relatively muted, with operating margins declining from a peak of 47% in FY13-FY14 to 44.5% in FY20. The company no longer reports revenues in SaaS and PaaS/IaaS and thus it is difficult to evaluate cloud progress."
Shares of Oracle closed at $61.21 yesterday.
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