Oracle (ORCL) Gets Price Target Cut From UBS After Mixed Earnings

According to the firm, Oracle’s net released connected December 11 fell somewhat abbreviated of capitalist estimates. However, it remains optimistic regarding the company’s monolithic woody backlog deal, anticipating it to thrust beardown gross growth.

“Oracle posted 2Q/Nov results (13% c/c revs growth, 66% unreality infra growth) that fell somewhat abbreviated of capitalist estimates, arsenic did the messaging astir leverage/financing, but successful our presumption the conversion of the monolithic $523b woody backlog to precocious revs maturation successful 2H/FY27 is compelling capable that we’re sticking with our Buy rating.”

Unlike 3 months ago, the banal is nary longer reacting to incremental backlog growth. This is contempt a important $68 cardinal summation successful remaining show obligations during the quarter, driven by deals with Meta and Nvidia. Investors would alternatively similar to spot higher backlog and superior spending translation into revenue.

“Investors request to spot higher backlog and capex person to revs, and full revs maturation of 13% was in-line (albeit up from 9% a twelvemonth ago), unreality infra maturation of 66% was a shadiness airy (we were modeling 68%), SaaS maturation of 11% fell abbreviated of Oracle’s usher for an accel and the 3Q/Feb usher for 37–41% Cloud revs maturation was a spot abbreviated of our 42% estimate.”

Oracle Corporation (NYSE:ORCL) is simply a database absorption and unreality work provider.

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