Analysts celebrated Oracle Corp.’s Q2 beat, dividend, and $10 billion share buyback approval by raising their price targets on the stock.
Piper Sandler analyst Brent Bracelin raised the price target to $100 from $80 (12.7 percent upside) and kept a Neutral.
The company’s Q2 revenue growth improved to 6 percent ex-currency from 2 percent last quarter, exceeding Street estimates by $156 million and reaching the highest constant currency growth in four years, Bracelin tells.
Despite improving cloud tailwinds, the post-earnings rally to the mid-$90s “fairly prices in improving momentum” at Oracle, says the analyst.
Citi analyst Tyler Radke raised the price target to $100 from $89 and kept a Neutral.
The company last night “delivered a clean beat/raise,” with a modest reacceleration in both cloud and total revenue, Radke tells.
The analyst says accelerated revenue growth is now in the numbers, tougher comps are ahead, and Oracle’s valuation is at a premium versus peers.
Deutsche Bank analyst Brad Zelnick upgraded to Buy from Hold with a price target of $120, up from $110 (35.2 percent upside).
The analyst views the company’s fiscal Q2 results as “confirmatory” and says “multiple indicators” point to further acceleration ahead.
He believes Oracle’s “aggressive” capital allocation is a “reliable forward indicator” and says the company is finally seeing an ongoing positive mix shift drive an inflection in financials.
Societe Generale analyst Richard Nguyen raised the price target to $103 from $88 (16 percent upside) and kept a Hold.
The company’s Q2 earnings topped consensus on all key metrics with a very positive message on cloud prospects, Nguyen says.
Barclays analyst Raimo Lenschow raised the price target to $91 from $87 (2.5 percent upside) and kept an Equal Weight.
The analyst believes Oracle’s multiple will continue to be elevated after the company “finally delivered on the promised growth acceleration” in last night’s fiscal Q2.
However, Lenschow is “not sure that ORCL will necessary become a consensus long overnight.” UBS analyst Karl Keirstead raised the price target to $94 from $86 (5.9 percent upside) but kept a Neutral.
The analyst notes that the entire beat came from on-premise license revenues. Given the surprise regarding the demand for Oracle database and middleware products, Keirstead contends that there may have been some “unusual” pull-forward in that spending.
