Citigroup Cuts Earnings Estimates for Oracle (ORCL)
Enterprise software giant Oracle Corporation ( ORCL ) saw its earnings estimates lowered on Tuesday by analysts at Citigroup.
The firm said it cut its estimates on ORCL through 2011, noting the company's European exposure. Still, Citigroup maintained its "Buy" rating on the stock, and introduced a new $28 price target.
Oracle shares, which had closed at $22.28 on Monday, fell 53 cents, or -2.4%, in premarket trading Tuesday.
The Bottom Line
We recently removed shares of ORCL from our recommended list on May 4, when the stock was trading at $26.01. The company has a .90% dividend yield, based on last night's closing stock price of $22.27. The stock has technical support in the $20-$21 price area. If the shares can firm up, we see overhead resistance around the $25-$26 price levels. We would remain on the sidelines for now.
Oracle Corporation ( ORCL ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.