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Jefferies Expects Oracle to Report In-Line in Q2 Report; Maintains “Hold” Rating (ORCL)

Posted: 12/17/2012 10:58:00 AM
Referenced Stocks: ORCL

Ahead of Tuesday's second quarter earnings report from Oracle Corporation ( ORCL ), analysts at Jefferies believe the software company will report in-line the Wall Street estimates.

Wall Street is expecting ORCL to report earnings of 61 cents per share on revenues of $9.03 billion. Jefferies believes that the company will report mostly in-line, however they are projecting revenue to be $8.95 billion.

Jefferies analysts commented that they are encouraged with Oracle products in engineering systems, however they have lukewarm feelings in other product areas. Jefferies notes that Oracle is facing growth problems in the future, however the company's stock value was "incrementally attractive."

The firm maintains its "Hold" rating on Oracle while boosting its price target from $32 to $34. The new valuation is a +6.4% upside to Friday's closing price of $31.96.

Oracle shares were up 27 cents, or +0.84%, during morning trading on Monday.

The Bottom Line
Shares of Oracle Corporation ( ORCL ) have a .75% dividend yield, based on Friday's closing stock price of $31.93. The stock has technical support in the $28-$29 price area. If the shares can firm up, we see overhead resistance around the $33-$35 price levels.

Oracle Corporation ( ORCL ) is not recommended at this time, holding a DARS™ Rating of 3.2 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 .