Enterprise software giant Oracle Corporation ( ORCL ) on Monday saw its shares added to Goldman Sachs' prestigious "Conviction Buy" List.
The firm also set a $33 price target on ORCL shares, suggesting a 27% upside to the stock's Friday closing price of $26.
Goldman noted the stock looks even better than before following its recent pullback. The firm commented, "Even off our lower-than-consensus CY12E EPS, Oracle trades at 11X, which compares to its five-year average of 15X and trough during the financial crisis of 9.4X (represents only 12% downside)."
Oracle shares, which have fallen more than 17% year-to-date, fell 26 cents, or -1%, in premarket trading Monday.
The Bottom Line
Shares of Oracle ( ORCL ) have a .92% dividend yield, based on Friday's closing stock price of $26.00. The stock has technical support in the $24 price area. If the shares can firm up, we see overhead resistance around the $28-$30 price levels.
Oracle Corporation ( ORCL ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.
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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