Is Oracle Corporation (NYSE:ORCL) in trouble? The rumor mill is churning out a tale of databases in hot water, and if these reports are true, the likes of Amazon and Salesforce are venturing away from this software giant. However, one bull loudly roars in disagreement, calling the idea of Amazon and Salesforce getting rid of Oracle something that sounds quite a lot “like fake news to us.”
Drexel Hamilton analyst Brian White shakes his head, calling these reports “inaccurate” and advising any investors that may be riled up: “we would be buyers of Oracle on any weakness this afternoon.”
Therefore, despite the grapevine’s whispers of replacement databases running amiss, the analyst reiterates a Buy rating on ORCL stock with a $62 price target, which implies a 33% upside from current levels. (To watch White’s track record, click here)
White asserts, “Despite a strong day across most of our tech coverage today, Oracle’s stock is in the red on the back of a host of media reports highlighting that Amazon and Salesforce will be moving away from Oracle, using alternative databases instead. There have been similar stories about Salesforce in the past and they turned out to be false. We believe today’s stories are once again inaccurate.”
After all, “Recall, Oracle’s Larry Ellison just reiterated on December 17 that neither Amazon or Salesforce were ‘moving off’ from Oracle, which we believe to be true. Although certain new application use cases could lead either company to a non-Oracle database, we do not believe these companies are dumping Oracle. During Oracle Open World in October, Oracle offered a guarantee that a user’s Amazon Redshift bill would be cut in half by using Oracle,” highlights the analyst.
The analyst notes with Oracle’s 18c Autonomous Database both “cheaper” as well as “much faster and more automated,” thereby scaling back labor expenses, he continues to place a strong bet on this tech player, unfazed by the hearsay.
TipRanks highlights a confident bullish camp on the Street liking this software giant’s prospects, with 15 out of 19 analysts polled in the last 3 months rating a Buy on ORCL stock and just 4 maintaining a Hold. The 12-month average price target stands at $56.72, boasting upside potential of nearly 22%.