Shares of Oracle have been hit after investors disappointed with the software company’s guidance.
Analysts at Global Equity Research, led by Trip Chowdhary, see an opportunity. Given that Oracle (ticker: ORCL) cloud infrastructure revenue rose 66% in the most recent quarter, and that Oracle can charge its customers more than OpenAI, maker of ChapGBT, he says buy the shares on current weakness.
global…
Shares of Oracle have been hit after investors disappointed with the software company’s guidance.
Analysts at Global Equity Research, led by Trip Chowdhary, see an opportunity. Given that Oracle (ticker: ORCL) cloud infrastructure revenue rose 66% in the most recent quarter, and that Oracle can charge its customers more than OpenAI, maker of ChapGBT, he says buy the shares on current weakness.
Global Equity Research has set a $140 price target on Oracle shares. The stock is down 9.5% at $114.69 in premarket trading on Tuesday. While last quarter’s earnings and revenue were broadly in line with expectations, guidance for the coming quarter fell short.
Analysts at Guggenheim led by John DiFucci also said Oracle’s growth story is still intact after yesterday’s news. They give the stock a price target of $150.
However, DA Davidson analyst Gil Luria begged to differ. Their price target dropped to $105 from $115 after the results. Luria wrote that long-term growth drivers are not benefiting the business as expected.
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Write to Brian Swint at brian.swint@barrons.com