Drexel Hamilton Believes Oracle Corp (NYSE: ORCL) Won’t Stop Here

By Austin Angelo

Drexel Hamilton analyst Brian White assigned a Buy rating to Oracle Corp (NYSE: ORCL) today and set a price target of $62. The company’s shares closed yesterday at $52.80, close to its 52-week high of $52.98.

White commented:

“We believe Oracle will at least meet our 1Q:FY18 revenue estimate of $9.03 billion (up 5% YoY; Street is at $9.03 billion) and slightly exceed our EPS projection of $0.61 (Street is at $0.60). Our model reflects a sales decline of 18% QoQ in 1Q:FY18 and better than the five-year average August quarter performance of down 22%. Recall, Oracle’s 1Q:FY18 outlook calls for sales to be up 4-6% YoY in CC and pro-forma EPS of $0.59-0.61. This earnings season, the companies in our software coverage delivered strong quarterly reports and this continued with the off-quarter updates in recent weeks.”

According to TipRanks.com, White is a 5-star analyst with an average return of 10.7% and a 64.2% success rate. White covers the Consumer Goods sector, focusing on stocks such as Juniper Networks, Amphenol Corp, and Cisco Systems.

Currently, the analyst consensus on Oracle Corp is Strong Buy and the average price target is $56.50, representing a 7.0% upside.

In a report issued on September 5, Credit Suisse also initiated coverage with a Buy rating on the stock with a $62 price target.

Based on Oracle Corp’s latest earnings report for the quarter ending May 31, the company posted quarterly revenue of $10.89 billion and quarterly net profit of $3.23 billion. In comparison, last year the company earned revenue of $8.6 billion and had a net profit of $1.83 billion.

Based on the recent corporate insider activity of 54 insiders, corporate insider sentiment is negative on the stock. Most recently, in July 2017, Thomas Kurian, the President-Product Development of ORCL sold 750,000 shares for a total of $37,837,500.

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