CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We keep our 12-month target at $130, on P/E of 19.8x our CY 25 EPS estimate of $6.57, above historical but below peers. We hold our FY 24 (May) EPS at $5.54 and FY 25 at $6.29. ORCL posts Nov-Q EPS of $1.34 vs. $1.21, beating the $1.33 consensus. Sales rose 5%, missing expectations, as growth from cloud services and license support (+12% a slight miss; 74% of revenue) was partly offset by declines from cloud and on-premises licenses (-18%), Services (-2%), and hardware (-11%). We positively view cloud growth of 25%, with infrastructure (IaaS) +52% and SaaS +15%. We believe OCI (Oracle Cloud Infrastructure) is poised to see demand surge from greater GenAI adoption, with plans to build 100 additional cloud data centers (also expanding 66 existing data centers). Fusion and Netsuite Cloud both grew a healthy 21%. Given the need to step up capex to build OCI capacity, leveraged financial position (net cash $80B), and inferior growth to other cloud/SaaS providers, we remain on the sidelines for a better entry point.