On Friday, TD Cowen maintained its positive stance on shares of Oracle Corporation (NYSE:ORCL), reiterating a Buy rating and a $165.00 price target. The firm's outlook comes ahead of Oracle's first-quarter earnings report, which is scheduled to be released on September 9.
Analysts from TD Cowen have conducted checks with System Integrators (SI), reseller partners, and data centers, which yielded encouraging results, indicating a net increase in sales personnel for the first time in seven quarters.
The firm anticipates Oracle to report a quarter in line with expectations, showcasing approximately 7% constant currency growth and to reaffirm its guidance for double-digit growth for the fiscal year 2025. These projections are based on recent positive signals from the company's business operations and market interactions.
TD Cowen suggests that the current consensus estimates for Oracle's fiscal year 2025 might be on the conservative side. The firm believes that there is potential for investor sentiment and Oracle's valuation to improve should the company continue to execute its business strategy effectively and meet market expectations.
Oracle's upcoming earnings report is being closely watched by investors, as it will provide insights into the company's performance and its ability to maintain growth in a competitive technology landscape. With the reaffirmed Buy rating and price target, TD Cowen signals confidence in Oracle's strategic direction and potential for future financial success.
Investors and market observers will be looking to the September 9 earnings release to gauge Oracle's progress and to assess whether the company is on track to achieve the double-digit growth forecasted for fiscal year 2025.
In other recent news, Oracle Corporation has been making significant strides in its operations. The company's Oracle Cloud Infrastructure (OCI) reported mid-40s year-over-year growth, leading to Deutsche Bank (ETR:DBKGn) reaffirming a Buy rating with a steady price target of $165. Meanwhile, Bernstein and Mizuho also expressed confidence in Oracle, maintaining their Outperform ratings, with Bernstein setting a price target of $171 and Mizuho at $170.
In the realm of mergers and acquisitions, Oracle co-founder Larry Ellison is poised to gain control of Paramount Global through Skydance Media's acquisition of the Redstone family's stake in the film and television company. Following the acquisition, Skydance, backed by Ellison, will merge with Paramount, offering $4.5 billion in cash or stock to Paramount shareholders.
In other recent developments, Oracle has settled a privacy lawsuit for $115 million, despite maintaining it did not engage in any wrongdoing. Moreover, TikTok is challenging the U.S. Department of Justice's mandate for its parent company, ByteDance, to divest its U.S. operations, emphasizing that its user data and content recommendation algorithm are securely stored on U.S.-based Oracle cloud servers.
Edward Jones has maintained a Buy rating on Oracle, pointing to the company's strategic expansion into cloud services and the anticipated boost in sales growth. These are exciting times for Oracle, as its strategic moves and performance in the cloud sector continue to be a focal point for investors.
InvestingPro Insights
As Oracle Corporation (NYSE:ORCL) approaches its earnings report, insights from InvestingPro can provide a deeper understanding of the company's financial health and market position. With a robust market capitalization of $393.01 billion, Oracle stands as a significant player in the technology sector.
Its P/E ratio, currently at 38.44, suggests a high valuation by the market, which is further reflected in an adjusted P/E ratio of 35.4 for the last twelve months as of Q4 2024. This valuation is underpinned by a solid revenue growth of 6.02% over the same period, indicating the company's ability to expand its financial base.
InvestingPro Tips highlight Oracle's consistent track record of dividend growth, having raised its dividend for 10 consecutive years, which may appeal to income-focused investors. Moreover, the company's share price has seen a large uptick over the last six months, with a 27.79% total return, showcasing strong market performance. For investors seeking more detailed analysis, there are over 17 additional InvestingPro Tips available, offering a comprehensive view of Oracle's financial metrics and market behavior ahead of the earnings report.
Oracle's commitment to shareholder returns, combined with its recent market performance and the upward revisions by 13 analysts for the upcoming period, could be a sign of the company's strong potential for future growth. These factors may contribute to the positive outlook shared by TD Cowen and other market observers as they await the September 9 earnings release.
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