Brian White Believes Oracle Corporation (ORCL) Will Be Just Fine Heading Into Earnings, Snap Inc (SNAP) Continues to Grow at a Rapid Pace

Drexel analyst weighs in on ORCL and SNAP, summarizing expectations for these two tech giants.

What does the future hold for Oracle Corporation (NYSE:ORCL) and Snap Inc (NYSE:SNAP)? Drexel Hamilton analyst Brian White weighs in on the two firms, providing expectations on Oracle’s upcoming earnings, and commentary regarding Snap’s new dancing Bitmoji lenses. Let’s take a closer look.

Oracle Corporation

Should you buy Oracle shares ahead of earnings today? Drexel’s Brian White says yes. Ahead of the print, the analyst reiterates a Buy rating on ORCL with a price target of $62, which represents a potential upside of 18% from where the stock is currently trading. (To watch White’s track record, click here)

White believes Oracle will at least meet his 1Q:FY18 revenue estimate of $9.03 billion, and slightly exceed his EPS projection of $0.61 (Street is at $0.60). Looking into 2Q:FY18, White is modeling sales of $9.51 billion (Street is at $9.49 billion) and EPS of $0.69 (Street is at $0.68).

White commented, “With a breakout quarter reported back in June, we believe 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. We believe the momentum in Oracle’s cloud business can continue in FY:18 and beyond. For 1Q:FY18, we are modeling SaaS sales of $1.068 billion (up 59% YoY) and PaaS/IaaS sales of $431 million (up 38%) for total cloud revenue of $1.50 billion (up 52%). For deferred revenue, we are forecasting $10.13 billion (up 7%) in 1Q:FY18 and calculated billings of $10.92 billion (up 5% YoY).”

Where does the rest of the Street side on this tech player? It appears bullish, as TipRanks analytics demonstrate OCRL as a Strong Buy. Out of 26 analysts polled by TipRanks in the last 3 months, 21 are bullish on Oracle stock while 5 remain sidelined. With a return potential of nearly 7%, the stock’s consensus target price stands at $56.50.

Snap Inc

Today, Snap unveiled a cool new innovation that allows a user to take their Bitmoji into the real world (using a rear facing camera). Bitmoji’s are defined by Snap as a “cartoon likeness of a user that are created in the Bitmoji application” and linked to Snapchat. Up until today, a user could send a personalized Bitmoji to a friend via Snapchat (or other message platforms); however, the Bitmoji did not interact with the real world.

White commented, “Snap unleashed Bitmoji’s into the real world as the company expands the capabilities of this unique innovation. This follows receiving a shout-out from Apple during an iPhone X demonstration this week that we believe will open up new opportunities for Snap.” The analyst continued, “Snap continues to grow at a rapid pace, introduce new innovations, roll-out compelling content and remain true to its core base of millennial followers. We continue to believe Snap has strong upside potential over the next 12 months.”

As such, the analyst reiterates a Buy rating on Snap, with a price target of $30, which represents a potential upside of 100% from where the stock is currently trading.

Out of the 27 analysts polled in the past 3 months, 8 rate Snap stock a Buy, 14 rate the stock a Hold and 5 recommend a Sell. With a slight return potential, the stock’s consensus target price stands at $15.02.