Analysts at FBR Capital Markets on Tuesday remained bullish on
enterprise software maker Oracle Corporation (
) in anticipation of the company's Thursday earnings report.
The firm maintained its "Outperform" rating and $38 price target
on ORCL, which suggests a 21% upside to the stock's Monday closing
price of $31.42.
An FBR analyst commented, "We expect Oracle to report solid
F3Q11 (February) results with revenue and EPS upside likely (AMC
3/24) as we believe the company continued to execute well in the
field and had another strong close to the quarter according to our
checks. We believe Oracle's integrated software stack combined with
its industry-specific application strategy continues to resonate
well with customers. We also think there is good upside potential
from Exadata, which according to our conversations continues to
build momentum in the field. Oracle shares are down 7% from last
month (compared to -3% for the S&P 500 and -5% for the FBR
Enterprise Software Index) partly due to worries over the crisis in
Japan, and this weakness presents an attractive opportunity. Owning
Oracle for the seasonally strong F4Q (May) has historically proven
to be an outperforming trade."
Oracle shares were mostly flat in premarket trading Tuesday.
The Bottom Line
Shares of Oracle (
) have a .64% dividend yield, based on last night's closing stock
price of $31.42. The stock has technical support in the $28-$30
price area. If the shares can firm up, we see overhead resistance
around the $33-$36 price levels.
Oracle Corporation (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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, as well as a detailed explanation of
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