UPDATE: Wolfe Research Starts Oracle (ORCL) at Peerperform
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Wolfe Research analyst Alex Zukin initiates coverage on Oracle (NYSE: ORCL) with a Peerperform rating and a price target of $75.00.
The analyst comments "In both its most recent quarter and fiscal year, ORCL revenue grew 0% on a constant currency basis, while EPS has grown at a steady double-digit clip, driven by share buybacks. With these two aspects in mind, combined with ORCL’s share performance, we ultimately believe ORCL needs to show mid-single digit growth for shares to meaningfully re-rate and outperform other software stocks over a multi-year horizon. Oracle’s fiscal fourth quarter (period ending May) and outlook for FY22 will be the first opportunity where investors will get a glimpse at whether Oracle’s growth businesses can finally overcome headwinds in its non-growth businesses to yield organic total company growth. We currently model total revenue +2.5% Y/Y and think mid-single digits is likely the hurdle for shares to trend higher."
Shares of Oracle closed at $76.66 yesterday.
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