In a research report issued Wednesday, JMP Securities analyst Patrick Walravens reiterated an Underperform rating on shares of Oracle Corporation (NYSE:ORCL) with a price target of $31, ahead of the software giant’s fiscal first-quarter results on Thursday. Shares of Oracle are currently trading at $40.33, up $0.15 or 0.37%.
Walravens wrote, “We have conducted due diligence on the quarter that has yielded six positive and nine negative data points (40% positive), roughly in line with our checks last quarter and slightly more negative than our checks in F1Q16 (which were 56% positive)”
The analyst continued, “Our checks generally suggest: 1) on the positive side, various teams within a major U.S. region appear to have put together solid quarters, driven in part by Oracle’s “fundamental database business,” which “continues to be really strong;” 2) on the negative side, Oracle continues to struggle to compete with the modern cloud infrastructure providers such as Microsoft Azure and Amazon Web Services (AWS); and 3) also on the negative side, various employees are fed up with the “organizational turmoil and chaos” that has existed at the company since Keith Block, who was Oracle’s EVP of North American sales, departed for salesforce.com in 2012.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Patrick Walravens has a yearly average return of 9.3% and a 63% success rate. Walravens has a -4.7% average return when recommending ORCL, and is ranked #293 out of 4163 analysts.
Out of the 38 analysts polled by TipRanks, 22 rate Oracle stock a Buy, 12 rate the stock a Hold and 4 recommend a Sell. With a return potential of 11%, the stock’s consensus target price stands at $44.58.