- Mizuho analyst Siti Panigrahi reiterates Buy on Oracle Corp (NYSE:ORCL) with a $116.00 price target.
- Oracle’s 3Q was driven by substantial cloud revenue ahead of consensus. While on-prem revenue came in slightly below consensus estimates, the company beat on cloud growth, operating margins, and EPS.
- Management was particularly bullish on its OCI differentiation and Cerner.
- Management guided to an impressive Q4 guide of 30%+ cloud growth.
- The analyst increased the FY23 cloud revenue estimates and slightly lowered the license on-prem license.
- Panigrahi raised the operating margin estimate as the company progressed on its cost-cutting initiatives.
- The analyst increased EPS estimates, which benefit from margin improvements and a forecasted decline in the Q4 tax rate.
- Despite the uncertain macro backdrop where competitors have noted headwinds, Oracle continues to see strong momentum across its SaaS and OCI business.
- The analyst reminds investors that ORCL remains uniquely differentiated in application and infrastructure markets.
- As the only true vertically integrated infrastructure and application provider with a best-in-class ERP/HCM offering and a rapidly improving infrastructure (OCI Gen 2) offering that is price competitive, the analyst expects that Oracle will continue to gain traction over the medium term.
- Both cloud growth and significant margin improvements over the medium-term back the re-rating.
- Price Action: ORCL shares traded higher by 1.01% at $84.94 on the last check Monday.
Guggenheim Upgrades ACADIA Pharmaceuticals to Buy, Announces $23 Price Target
Guggenheim analyst Yatin Suneja upgrades ACADIA Pharmaceuticals (NASDAQ:ACAD) from Neutral to Buy and announces $23 price target.