Oppenheimer Reiterates Perform on Oracle Corporation Following Mixed Earnings Results
In a research report published Wednesday, Oppenheimer analyst Brian Schwartz reiterated a Perform rating on Oracle Corporation (NYSE:ORCL), following the company's mixed third-quarter results, partially driven by a greater than anticipated FX headwind.
Schwartz noted, "The cloud bookings commentary and metric appears strong (~14% sequential growth); however, 4Q guidance assumes a decelerating growth trend in cloud SaaS and PaaS revenue (high-20% in 2H vs mid-30% in 1H), which is difficult to reconcile given the increasing spending for the cloud business (and positive commentary) and presents a challenge for investors to look beyond, in our opinion."
Bottom Line: "We believe 3Q results are unlikely to drive significant benefits near term to investor sentiment (i.e., multiples expansion) nor move bears off the sidelines given a decelerating trend in cloud SaaS and PaaS revenue and anticipated lowering of consensus estimates."
According to TipRanks.com, which measures analysts' and bloggers' success rate based on how their calls perform, analyst Brian Schwartz has a total average return of 17.2% and a 78.1% success rate. Schwartz has a 15.1% average return when recommending ORCL, and is ranked #70 out of 3533 analysts.