Key takeout
Oracle (ORCL) is expected to report fourth quarter results after Wednesday’s closing bell, with analysts monitoring the growth of Oracle Cloud infrastructure driven by AI demand.
In a note to clients over the weekend, Jeffries analysts who hold a “buy” rating on the stock, raised their price target from $190 to $200, saying that “both OCI and backlog inflections” would be easier to facilitate capacity constraints.
Citi analysts with a “neutral” rating and a price target of $185, said checks from recent events suggested “enhancing corporate customer interest in modernizing the OCI database,” but are monitoring “a greater confidence in the pace of OCI profitability improvements.”
Analyst estimates show that OCI revenue is expected to increase by 54% year-on-year to $3.11 billion, while total revenue is expected to increase by 9% to $15.57 billion, according to Analyst estimates. Adjusted net income is projected to increase to $4.75 billion ($1.64 per share), up from $4.61 billion the previous year, or $1.63 per share.
Of the 13 analysts tracked by Visible Alpha, six have an Oracle Stock “buy” rating, along with seven “hold” ratings. The consensus price target of around $174 is slightly below Monday’s closing price. The stock has been in tears for the past few weeks, adding about 7% in June so far, and has increased its value by about a quarter since the end of April.
