Monness analyst Brian White has maintained their neutral stance on ORCL stock, giving a Hold rating today.
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Brian White has given his Hold rating due to a combination of factors affecting Oracle’s current financial standing and future outlook. Despite Oracle being a high-quality company with potential growth opportunities in cloud transformation and generative AI, its recent financial results were underwhelming. The company’s second-quarter revenue and operating profit did not meet expectations, and while there was a notable gain from the sale of its stake in Ampere, the overall financial performance was mixed.
Additionally, Oracle’s increased capital expenditure plans and rising debt levels contribute to a cautious stance. The company’s earnings call was described as chaotic, with new leadership unable to address concerns about the significant rise in capital expenditures. These factors, combined with a competitive market environment and challenging macroeconomic conditions, lead to a Hold rating as Oracle’s valuation appears stretched and its free cash flow remains negative.
White covers the Technology sector, focusing on stocks such as Oracle, Salesforce, and MongoDB. According to TipRanks, White has an average return of 16.3% and a 67.20% success rate on recommended stocks.
In another report released today, D.A. Davidson also maintained a Hold rating on the stock with a $180.00 price target.