Enterprise software maker Oracle Corporation ( ORCL ) on Wednesday saw its price target and earnings estimates lowered by analysts at Jefferies & Co.
The firm maintained its "Buy" rating on ORCL but cut its price target from $37 to $36. That new target suggests a smaller 13.5% upside to the stock's Tuesday closing price of $31.73.
Jefferies also lowered its fourth quarter and full-year 2011 estimates by a penny, while cutting its 2012 EPS estimate from $2.65 to $2.59.
The analyst commented, "Our work indicates a downtick in EMEA and in Applications, although some large deals could offset some of the impact. Overall we are a bit more cautious. But given ORCL's relatively defensive business model, operating margin expansion and valuation, we maintain our Buy."
Oracle shares fell 23 cents, or -0.7%, in premarket trading Wednesday.
The Bottom Line
Shares of Oracle ( ORCL ) have a .76% dividend yield, based on last night's closing stock price of $31.73. The stock has technical support in the $28-$30 price area. If the shares can firm up, we see overhead resistance around the $32-$34 price levels.
Oracle Corporation ( ORCL ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.
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