Nomura Comments on Oracle (ORCL)

Following Oracle’s (Nasdaq: ORCL) mixed earnings results yesterday analysts at Nomura reiterated their Buy rating and raised their price target to $36 (from $32).

Analyst Rick Sherlund said valuation reflects current slow growth, but he thinks there is room for improvement. According to the report, catalysts for the stock include:

1.) The focus of the upcoming Oracle user group meeting will be on Oracle’s repositioning for the cloud, directionally positive for the future;

2.) With easy year over year comps upcoming in Q2 (Nov) and the absence of the stiff FX headwind we think growth will look better and help the stock build its valuation;

3) The catalyst of a turnaround in the hardware business has been pushed out a quarter or two longer, but is still on the horizon this fiscal year;

4) Valuation: the shares trade at 11.9x FTM EPS estimates, a 10% discount to the S&P and over one standard deviation below the mean of the past 5 years.

For an analyst ratings summary and ratings history on Oracle click here. For more ratings news on Oracle click here.

Shares of Oracle closed at $32.26 yesterday.

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