UBS Reiterates Buy on Oracle (ORCL) Following Field Checks
UBS reiterated a Buy rating and $46.00 price target on Oracle (NYSE: ORCL) following field checks. A global survey of 50 ORCL value-added resellers yielded okay results, with a majority seeing fair q/q sales trends and coming in line with forecasted targets.
Analyst Brent Thill commented, "Our proprietary global survey of 50 ORCL value-added resellers (VAR) yielded okay results, with a majority seeing fair q/q sales trends and coming in line with forecasted targets. We would've liked to see higher "net strong" ratios considering the F4Q miss, but feedback still supports an inline/low-end report, in our view. F2Q outlook was left wanting, where despite stable pipeline quality and limited macro concerns, the net ratio of VARs seeing strong results q/q was the lowest vs. prior Aug Q surveys. Initial CY16 outlooks also left more to be desired (+6% y/y) but still came in ahead of UBSe, consensus ~3%. Lastly, survey says adoption of ORCL's newer offerings remains lukewarm, albeit showing improvement into F2Q, and where VARs' overall view of ORCL's Cloud strategy remains neutral."
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Shares of Oracle closed at $37.56 yesterday.