Benzinga - Shares of Oracle Corporation (NYSE: ORCL) fell in the premarket on Friday, even after the company reported strong fourth-quarter earnings.
- Mizuho Securities analyst Siti Panigrahi maintained a Buy rating and price target of $116.
- JMP Securities analyst Patrick Walravens reaffirmed a Market Perform rating on the stock.
- BMO Capital Markets analyst Keith Bachman maintained a Market Perform rating, while raising the price target from $95 to $96.
Mizuho Securities
- “Oracle delivered solid FQ3 results driven by strong cloud revenues ahead of consensus, partly offset by softness in on-premise license revenues that led to slight revenues miss, but Op. margin and EPS exceeded expectations,” Panigrahi wrote in a note.
- “We were impressed with strong FQ4 guidance which reflects accelerating momentum of cloud business (both OCI and SaaS), giving us more confidence in our thesis that Oracle continues to be one of the more resilient names in software as both OCI and Fusion apps drive growth,” he added.
- Oracle’s quarterly results were “mixed” and guidance was better than expected, Walravens said in a note.
- “Oracle's cloud business is ramping, achieving a run-rate of ~$16.2B in F3Q and growing ~25% organically (~28% in CC),” the analyst wrote. He added, however, that the company “faces an uncertain macroeconomic outlook.”
- “Net, Oracle had a solid if unspectacular quarter with most revenue line items in line with our estimates,” Bachman said. “License revenue was a bit below estimate, though not as important as cloud results, in our view,” he added.
- “The guide for cloud and support suggest improved growth for the May quarter with particular strength in OCI,” the analyst further stated.
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