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Jefferies Cuts Target, Estimates for Oracle, but Still a “Buy” (ORCL)

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.

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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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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