Canaccord Raises Oracle Orice Target to $57 From $56 on “Solid” Earnings Outlook

Canaccord Genuity reiterated its “buy” recommendation for Oracle (ORCL) and raised its price target to $57 from $56 after the company’s earnings surprised on the upside for the third straight quarter and the brokerage said the earnings outlook was “solid”.

“Our view remains unchanged, which is that Oracle is a logical and relatively safer port in a storm that some fear will arrive,” analyst Richard Davis wrote in a note on Friday. “The stock will likely outperform in down or choppy markets and underperform in a strong tape. We believe ORCL is sufficiently inexpensive that it should remain a BUY.”

For fiscal Q2 the company predicted 42-46% cloud growth, 4-7% total revenue growth, and $0.66-0.70 non-GAAP
EPS. These compare with Oppenheimer estimates of 47% cloud growth, 5% total revenue growth, and $0.67non-GAAP EP, ” so pretty solid, despite modestly slower cloud growth than we had modeled,” Davis said.

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