Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Oracle Presents an Interesting Opportunity - Morgan Stanley

Published 06/06/2022, 18:06
Updated 06/06/2022, 18:06
© Reuters.

© Reuters.

By Sam Boughedda

Morgan Stanley analyst Keith Weiss reiterated an Equal Weight rating and $88 price target on Oracle (NYSE:ORCL) Monday, stating that the shares present an interesting opportunity.

Asking the question of whether Oracle is a "safe(er) ship in stormy seas," the analyst wrote that increased confidence in the underlying drivers of a modest revenue acceleration in FY23, along with expectations for OM to sustain above pre-pandemic levels, make them believe the risk-reward at Oracle presents an "interesting opportunity on a relative basis."

"With shares outperforming thus far this year, the debate on the stock has shifted to whether there is still room left to run in the value trade at Oracle," wrote Weiss. "At reasonable valuations (short duration assets) are seen as a relatively safe harbor as investors navigate a period of rising interest rates and multiple compression across software."

"From that perspective, we'd argue that Oracle presents an interesting opportunity for better-than-expected EPS growth in a choppy marketplace," he added.

Weiss sees positive data points on the momentum of the core business at Oracle, resulting in the belief that the shares adequately discount the uncertainties.

Oracle is expected to report its fourth-quarter results on June 13, 2022.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.