FBR Capital Stays Bullish on Oracle Ahead of Earnings Report (ORCL)


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Analysts at FBR Capital Markets on Tuesday remained bullish on enterprise software maker Oracle Corporation ( ORCL ) 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 ( ORCL ) 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 ( ORCL ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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