KeyBanc Believes Oracle Corp (NYSE: ORCL) Still Has Room to Grow

By Austin Angelo

KeyBanc analyst Monika Garg reiterated a Buy rating on Oracle Corp (NYSE: ORCL) yesterday and set a price target of $61. The company’s shares closed yesterday at $50.44, close to its 52-week high of $51.85.

Garg observed:

“We focused on Oracle’s cloud transition, and how moving to the cloud can generate 3x the revenue per customer, as well as Oracle’s opportunity in the SaaS market. Oracle’s opportunity in cloud and SaaS, and valuation, have been the main area of investor push-back since our upgrade. As Oracle continues to execute on its cloud transition, we believe multiple expansion can continue. Key Investment Points Oracle on average could see 3x the revenue from a customer who moves its workload from on-premise to the cloud. Transitions at Autodesk and Adobe, showed lifetime customer value driven from the cloud is much higher than from on-premise. As Oracle moves its customers to the cloud, it should gain a similar benefit. For the customer, migrating to the cloud can lead to significant overall cost savings, based on labor and hardware costs needed to manage on-premise solutions.”

According to TipRanks.com, Garg is a 5-star analyst with an average return of 30.9% and a 75.4% success rate. Garg covers the Technology sector, focusing on stocks such as Dassault Systemes SA, Aspen Technology, and Mentor Graphics.

Oracle Corp has an analyst consensus of Moderate Buy, with a price target consensus of $55.

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 $10.59 billion and had a net profit of $2.81 billion.

Based on the recent corporate insider activity of 52 insiders, corporate insider sentiment is neutral on the stock. Earlier this month, Bruce Chizen, a Director at ORCL sold 206,250 shares for a total of $10,258,875.

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