Analysts recommend Oracle shares after good report
2022.12.13 07:29
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Analysts recommend Oracle shares after good report
Budrigannews.com – Oracle, Inc. After the company reported earnings for its second fiscal quarter that were higher than anticipated, shares are up almost 3% today.
“In Q2, Oracle’s total revenue grew 25% in constant currency—exceeding the high end of our guidance by more than $200 million,” Oracle CEO Safra Catz stated. “This beat the analyst consensus for earnings of $1.16 per share on revenue of $11.95 billion.” Revenue increased 18% year-over-year as cloud services revenue increased by 14% to $8.6 billion. Our infrastructure and applications cloud businesses, which grew 59% and 45%, respectively, drove that strong overall revenue growth.”
Additionally, Oracle declared a $0.32 per share quarterly cash dividend.
After “solid and better-than-feared” results, analysts at Piper Sandler raised the price target from $75 to $85 per share.
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“We are increasing our PT to reflect a slightly higher growth trajectory through FY27 and the assumption that the FCF margin has bottomed and may begin to recover into the following year (the discount rate remains unchanged).” “We maintain at Neutral until we see further evidence of a sustainable path to double-digit revenue growth and improving FCF margins,” the analysts stated in a client note. “While our bias is turning more constructive, we maintain at Neutral.”
The FQ2 results showed “acceleration against a decelerating backdrop,” according to Deutsche Bank analysts. Following “particularly impressive results against a difficult backdrop, featuring organic acceleration and OCI strength,” they reiterated their Buy rating for ORCL stock.
“Oracle is the only company for which we feel confident relying on capex as a leading indicator, and it is anticipated that it will remain at these levels for the subsequent few quarters. According to the analysts, “it is evident to us that OCI has a seat at the table with some of the largest and most demanding purchasers of cloud infrastructure”
Bank of America and Stifel, two other sell-side firms, also increased their price targets for Oracle stock.
