- 15 Dec '17 at 4:44 pm #13920
Software giant Oracle reported better than expected second…
[article]435[/article]15 Dec '17 at 7:15 pm #13921Helmholtz WatsonParticipant
Strong numbers – cloud missed analysts but still strong increase – would like to $AMZN challenged16 Dec '17 at 6:55 pm #13929
Jefferies maintained $ORCL Buy rating on the stock and its $61 price target.
We understand investor frustration with the uncertainty and inconsistent dynamics of this [bring your own licensing, or BYOL] model as it evolves, but we also believe that we have never witnesse[d] such an aggressive model transition at such scale and at such velocity. Regardless of the coal this represents for some investors at the end of the year (stock was down 6% after hours), we believe the technology will win in this case (specifically, the 12c R2 database cycle, in addition to the Cloud math).16 Dec '17 at 6:56 pm #13930
The Downgrades Incl:
Canaccord Genuity maintained a Buy rating But lowered its price target from $57 to $53.
KeyBanc Capital Markets maintained $ORCL Overweight rating But cut the price target from $61 to $56.
RBC Capital downgraded Oracle from Outperform to Sector Perform and cut its target from $53 to $51.
BMO Capital Markets maintained Outperform rating BUT lowered its price target from $57 to $55.16 Dec '17 at 6:58 pm #13931
Wedbush maintained $ORCL Outperform rating and 12-month price target of $58.
As we’ve been saying, meaningful acceleration in PaaS/IaaS will probably take several quarters, as ORCL works to gain traction with revamped packaging, pricing, and technology (autonomous database). We’re a little concerned that management’s commentary could create unrealistic expectations among investors about the pace of adoption of autonomous database, as customers generally take many quarters (or even years) to evaluate major new ORCL database technology innovations, even when value-add is significant. However, we’re optimistic that database ELA activity will remain solid, as ORCL benefits from a robust demand environment, a strong competitive position, and greater clarity on their pathway to cloud with their Oracle licenses.16 Dec '17 at 7:00 pm #13932
Oppenheimer Maintain Perform rating.
Oracle’s F2Q18 cloud results missed Street expectations which resets growth expectations for cloud. The cloud reset could weigh on the company valuation since it reveals Oracle’s cloud business-model transition is taking longer than the Street expected, and resets typically last multiple quarters. Positively, premise-based revenues show decent results from strong ELA renewals, BYOL, and autonomous database traction. Bottom Line: While we commend Oracle’s cloud transition as strategically sound, its efforts to catch up to the public cloud infrastructure vendors may have come too late. We think the strategy will take many years to make up the ground and possibly lead to customer workloads attrition along the way. The consensus may be underestimating the large operating expenditures spend to support the strategy, too.16 Dec '17 at 7:00 pm #13933
JPMorgan reiterated $ORCL Overweight rating and $55 price target.16 Dec '17 at 8:05 pm #13934CautiousInvestorKeymaster
[size=5][color=blue][b]Microsoft & Amazon are KINGS of the cloud technology currently …
with extensive competition in the 2nd tier vendors (IBM, Oracle, etc)[/b][/color][/size]
16 Dec '17 at 8:51 pm #13936Helmholtz WatsonParticipant
Cloud computing is a massive earner – but what of the potential massive data breach if it all goes wrong. It is like that is never mentioned but surely a real risk
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