Oracle Sees Strong Q4 Driven by Cloud Growth
Oracle Corporation (NYSE:ORCL) reported excellent fiscal fourth-quarter results and reiterated its double-digit EPS growth guidance for FY:2018. In reaction, Drexel analyst Brian White reiterated a Buy rating on ORCL, while raising the price target to $62.00 ($53.00), which implies an upside of 34% from current levels.
The Software giant reported 4Q:FY17 non-GAAP sales of $10.94 billion, which beat White’s estimate of $10.57 billion (consensus was at $10.45 billion) and increased by 4% YoY in CC, while pro forma EPS of $0.89 handily exceeded our EPS projection of $0.80 (consensus was at $0.78).
White commented, “With momentum in the cloud, Oracle’s stock appears poised to break through the highs made in 2000. Three years ago, Oracle began pushing aggressively into the cloud, negatively impacting sales and EPS along the way; however, we believe the worst of this transition is over.”
“Oracle is clearly demonstrating to the market that the company has established itself as a formidable force in the cloud and the naysayers over the past few years are being proven wrong. Oracle continued to show cloud momentum with the sale of $855 million in new ARR in 4Q:FY17 and reporting over $1 billion in quarterly SaaS revenue for the first time ever,” White added.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Brian White has a yearly average return of 10.7% and a 61% success rate. White has a 3.9% average return when recommending ORCL, and is ranked #183 out of 4579 analysts.
Snap Hits the Road with New Map Feature
Yesterday, Snap Inc (NYSE:SNAP) blew its users away yet again with its new invention: Snap Map. Enthusiastic about the brand-new feature the company brought on the table, White reiterates a Buy rating listing a price target of $30, which represents an upside circling 74% compared to where the shares last closed.
Not only did the social network giant ink $100 million deal with Time Warner Inc. earlier this week, it also introduced for the first time to the world Snap Map. Snap Map is a feature enabling Snapchat users to have access to their friends’ location, and to spot attractive events worldwide by watching the Stories people who attend the events post. The analyst reveals, “we played with this new feature and we believe this will be a big hit among Snapchat users.”
White highlights the constant innovation Snap comes up with, especially considering the past few months, referring to “custom Stories”, the New World Lenses and the freshly signed deal with Time Warner Inc. The analyst concludes those events make SNAP shares a buying opportunity.
According to TipRanks, White is ranked #200 out of #4573 analysts. White has a 62% success rate and generates an annual yield of 9.9%. However, when recommending SNAP, the analyst earns –8.8% average profit on the stock.
TipRanks analytics show SNAP as a Hold. Based on 33 Wall Street analysts offering recommendations for this share, 12 issue a Buy, 16 maintain a Hold and 5 recommend a Sell. The 12-month average price target stands at $21.78, making a nearly 26% upside from where the stock is currently trading.