Followers | 680 |
Posts | 141228 |
Boards Moderated | 36 |
Alias Born | 03/10/2004 |
Monday, March 06, 2023 8:40:02 AM
By: Investing.com | March 6, 2023
Oracle (NYSE:ORCL) may be able to buck the macro trend, according to Morgan Stanley, while Deutsche Bank said the company is becoming more strategic, on Monday.
The analysts released notes on the software company ahead of its fiscal third-quarter results on Thursday, March 9, after the close.
Morgan Stanley analysts told investors in a note that the firm's CIO survey, channel checks, and analysis of the drivers of license outperformance "suggest Oracle may be able to yet again buck the macro trend."
However, they believe the investor focus shifts more towards margins, gross margin recovery, and further opex savings "as they look to underwrite the current multiple."
"Oracle managed to largely buck the macro trend over the past several quarters, delivering durable Cloud revenue growth and upside on license and hardware revenue in Q2," the analysts, who have an Equal-weight rating and a $90 price target on the stock, wrote. "We see the key investor debates heading into Q3 earnings results to focus on three key topics: 1) cloud momentum; 2) license revenue upside; and 3) cost reductions from Cerner.
In addition, they said Morgan Stanley's checks indicate Oracle's cloud momentum should sustain in the third quarter, while their CIO survey and view of the potential drivers of the second quarter license outperformance "suggest the potential for upside ahead."
At Deutsche Bank, analysts told investors in a note that their strategic checks "reflect Oracle becoming more strategic despite NT deal slippage."
"Our F3Q checks suggest underlying customer interest remains very healthy if not improving, particularly for Cloud (both SaaS and OCI); however, the quantity of deals (specifically net new initiatives) slipping out of F3Q was elevated as customers navigate macro cross currents," said Deutsche Bank analysts, who have a Buy rating and $120 price target on the stock.
"Positively, we hear from multiple sources that ELA/ULAs (Enterprise/Unlimited License Agreements) are very much back in fashion after slowly waning over several years; we see this as an important proxy for Oracle's strategic relevance to its customers. On balance, customers seem to be making longer, more durable commitments to Oracle," they added.
Overall, Deutsche Bank remains firm in its constructive view on Oracle and sees several positive factors "driving the potential for organic revenue acceleration and EPS upside in FY24 and beyond."
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Recent ORCL News
- Oracle Increases Research and Development Investments in Morocco • PR Newswire (US) • 05/09/2024 07:29:00 PM
- Oracle Named a Leader in Utilities CIS and Billing IDC MarketScape • PR Newswire (US) • 05/09/2024 12:00:00 PM
- Oracle Introduces New AI-Powered Skills Solution to Help Organizations Drive Employee and Business Growth • PR Newswire (US) • 05/08/2024 12:00:00 PM
- Oracle Named a Leader in 2024 Gartner® Magic Quadrant™ for Supply Chain Planning Solutions • PR Newswire (US) • 05/07/2024 12:00:00 PM
- Oracle Code Assist Can Help Developers Build Applications Faster with AI • PR Newswire (US) • 05/07/2024 12:00:00 PM
- Red Hat OpenShift Generally Available on Oracle Cloud Infrastructure • Business Wire • 05/06/2024 03:00:00 PM
- Accenture and Oracle Collaborate to Help Clients Accelerate Generative AI Adoption, Starting with the Finance Organization • Business Wire • 05/06/2024 11:59:00 AM
- Oracle Database 23ai Brings the Power of AI to Enterprise Data and Applications • PR Newswire (US) • 05/02/2024 03:00:00 PM
- Oracle and TIM Collaborate to Accelerate Cloud Adoption in Italy • PR Newswire (US) • 05/02/2024 12:51:00 PM
- Oracle Advances Global RTSM Capabilities to Help Sponsors • PR Newswire (US) • 05/01/2024 12:58:00 PM
- Oracle Energy and Water Awards Recognize Utilities Leading in Industry Transformation and Innovation • PR Newswire (US) • 05/01/2024 12:00:00 PM
- CPS Energy to Power its Operations with Oracle Cloud • PR Newswire (US) • 04/30/2024 12:15:00 PM
- Oracle Introduces New AI Capabilities to Help Organizations Boost Sales • PR Newswire (US) • 04/25/2024 01:48:00 PM
- Oracle U.S. Government Cloud Customers Accelerate Sovereign AI with NVIDIA AI Enterprise • PR Newswire (US) • 04/25/2024 12:00:00 PM
- Oracle Helps Federal Agencies Optimize Finance in the Cloud • PR Newswire (US) • 04/25/2024 12:00:00 PM
- Coca-Cola and Microsoft Sign Billion-Dollar Agreement, Apple Event Set for May 7, and More News • IH Market News • 04/24/2024 11:28:02 AM
- Oracle Protects Healthcare Customers Against Cyberattacks • PR Newswire (US) • 04/23/2024 08:15:00 PM
- Major Global Businesses Adopt Oracle Database@Azure Worldwide • PR Newswire (US) • 04/23/2024 12:00:00 PM
- Oracle Helps Healthcare Organizations Solve Critical Supply Chain, HR, and Finance Challenges • PR Newswire (US) • 04/23/2024 12:00:00 PM
- Auxilio Mutuo Hospital Selects Oracle Health's EHR to Improve Patient Experience • PR Newswire (US) • 04/22/2024 12:15:00 PM
- Oracle Cloud Service Enables Banks to Manage Climate Change Risk Across Portfolios • PR Newswire (US) • 04/22/2024 12:00:00 PM
- Oracle Cloud Secret Impact Level 6 Regions for U.S. Department of Defense • PR Newswire (US) • 04/22/2024 12:00:00 PM
- Oracle and Reka Collaborate to Advance AI Innovation • PR Newswire (US) • 04/18/2024 12:00:00 PM
- Apple to Invest $250 Million in Singapore Expansion, Oracle Commits $8 Billion to Japan Infrastructure, and More News • IH Market News • 04/18/2024 11:11:52 AM
- Oracle to Invest More Than $8 Billion in Cloud Computing and AI in Japan • PR Newswire (US) • 04/18/2024 01:00:00 AM
Avant Technologies Equipping AI-Managed Data Center with High Performance Computing Systems • AVAI • May 10, 2024 8:00 AM
VAYK Discloses Strategic Conversation on Potential Acquisition of $4 Million Home Service Business • VAYK • May 9, 2024 9:00 AM
Bantec's Howco Awarded $4.19 Million Dollar U.S. Department of Defense Contract • BANT • May 8, 2024 10:00 AM
Element79 Gold Corp Successfully Closes Maverick Springs Option Agreement • ELEM • May 8, 2024 9:05 AM
Kona Gold Beverages, Inc. Achieves April Revenues Exceeding $586,000 • KGKG • May 8, 2024 8:30 AM
Epazz plans to spin off Galaxy Batteries Inc. • EPAZ • May 8, 2024 7:05 AM