Analysts React to Oracle’s Strong Earnings Beat and AI Outlook

STA Research
March 13th, 2024
AT&T Inc: The company forecast first-quarter adjusted profit in line with analysts' estimates, signaling steady demand for its discounted premium plans combining 5G mobile with high-speed fiber data. The company reaffirmed its annual adjusted profit forecast in the range of $1.97 to $2.07 per share. Bank of America Corp: The bank eliminated some investment banking roles, including junior bankers in New York. This follows recent cuts in its investment banking and global markets divisions globally as part of an annual performance review. Barclays: Chairman Nigel Higgins believed the bank’s former CEO Jes Staley's ties with the late financier Jeffrey Epstein did not warrant a board discussion in 2019, according to court documents. Boeing Co: U.S. Transportation Secretary Sean Duffy will visit Boeing's factory in Renton, Washington, to ensure the company is maintaining safety standards six years after a deadly 737 MAX crash. This follows increased oversight of Boeing after recent incidents. Coinbase Global Inc: The company registered with India's Financial Intelligence Unit to offer crypto trading services in the country. It plans to launch its retail services later this year, though no specific timeline has been disclosed. Delta Air Lines Inc: The company slashed its first-quarter profit estimates by half, citing weakened demand due to U.S. economic uncertainty. Delta also lowered its revenue growth expectations for the quarter. Eaton Corporation PLC: The power management company announced it will acquire Fibrebond Corporation in a $1.4 billion deal to expand its reach into the data center market. The transaction is expected to close in the third quarter of 2025. Hinge Health Inc: The company filed for its long-sought initial public offering (IPO) after reporting a 33.4% increase in revenue for 2024 and a reduction in net losses. It will list on the New York Stock Exchange under the symbol "HNGE." Illumina Inc: The company lowered its annual forecast after China announced a ban on imports of its genetic sequencing instruments. The company expects a 2025 adjusted profit of around $4.50 per share. Kohl’s Corp: The company forecast a larger drop in annual comparable sales than expected, projecting a 4% to 6% decline in 2025 same-store sales, putting pressure on new CEO Ashley Buchanan as he works to turn the company around. Lululemon Athletica Inc and Nike Inc: A New York federal jury awarded Nike $355,450 after ruling that Lululemon’s athletic shoes violated Nike’s patent rights. However, Lululemon plans to appeal the ruling. Meta Platforms Inc: The company is testing its first in-house chip for training artificial intelligence systems. If successful, it plans to ramp up production for wide-scale use, reducing reliance on external suppliers like Nvidia. Oracle Corp: CEO Safra Catz gave a strong growth outlook for fiscal 2026 and 2027, forecasting revenue growth of 15% and 20%, respectively, driven by the rising demand for AI computing. However, the company’s quarterly revenue slightly missed analysts' estimates. Southwest Airlines Co: The airline cut its unit revenue growth forecast for the first quarter due to concerns over discretionary spending and tariff pressures. The company also plans to charge some customers for checked bags, ending a unique free policy. TXNM Energy Inc: The company is exploring a sale after receiving takeover interest. TXNM provides electricity to about 800,000 homes and businesses in New Mexico and Texas. VinFast Auto Ltd: The Vietnamese electric vehicle maker plans to install up to 100,000 charging stations across Indonesia and set up a production facility with an annual capacity of 50,000 units. The company is also considering investments in renewable energy projects. Walt Disney Co: A California federal jury ruled that Disney's "Moana" did not infringe on an artist’s copyrights, rejecting claims that the company had copied material for the movie "Bucky." The artist had sought $100 million in damages. Xpeng Inc: The Chinese electric vehicle maker is considering large investments of up to $13.80 billion in humanoid robots, signaling a long-term commitment to the technology.
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Oracle Analyst Coverage

Oracle Corporation (NYSE: ORCL) is garnering significant attention from analysts following its impressive earnings report and optimistic outlook on artificial intelligence (AI). The technology giant reported robust financial results, surpassing analysts’ expectations, and provided bullish guidance on its AI initiatives, prompting analysts to reassess their coverage on the company.

Oracle’s stellar performance in its recent earnings report has sparked a flurry of activity among analysts, with many revising their outlook and price targets for the stock. The company’s strong earnings beat and optimistic guidance have underscored its resilience and ability to capitalize on emerging trends in the technology sector, particularly in AI and cloud computing.

One of the key highlights of Oracle’s earnings report was its strong revenue growth driven by its cloud services and license support segment, which saw a significant increase in demand for its AI-powered solutions. The company’s strategic investments in AI and machine learning technologies have positioned it as a leader in the rapidly evolving AI market, attracting praise from analysts for its innovative approach and forward-thinking strategy.

In response to Oracle’s impressive earnings report and positive outlook, several analysts have revised their coverage on the stock:

  1. Wolfe Research:
    • Rating: Buy
    • Target Price: USD 150
    • Analysis: Wolfe Research upgraded Oracle’s stock to a Buy rating and raised its target price to USD 150. This indicates a bullish outlook on the company, suggesting potential for significant appreciation in the stock’s value.
  2. Morgan Stanley & Co.:
    • Rating: Hold
    • Target Price: USD 115
    • Analysis: Morgan Stanley & Co. maintained a Hold rating on Oracle’s stock with a target price of USD 115. This suggests a neutral stance, implying that the stock is expected to perform in line with the market.
  3. TD Cowen:
    • Rating: Outperform
    • Target Price: USD 130 » USD 145
    • Analysis: TD Cowen maintained an Outperform rating on Oracle’s stock and adjusted its target price range from USD 130 to USD 145. This implies a positive outlook, suggesting that the stock is expected to outperform the market.
  4. Guggenheim Securities:
    • Rating: Buy
    • Target Price: USD 150
    • Analysis: Guggenheim Securities reiterated a Buy rating on Oracle’s stock with a target price of USD 150. This indicates confidence in the company’s growth prospects and suggests potential upside for investors.
  5. Stifel Nicolaus:
    • Rating: Hold
    • Target Price: USD 120
    • Analysis: Stifel Nicolaus maintained a Hold rating on Oracle’s stock with a target price of USD 120. This suggests a neutral stance, indicating that the stock is expected to perform in line with market expectations.
  6. Evercore ISI:
    • Rating: Buy
    • Target Price: USD 145
    • Analysis: Evercore ISI reiterated a Buy rating on Oracle’s stock with a target price of USD 145. This indicates a bullish outlook, suggesting potential for appreciation in the stock’s value.
  7. Goldman Sachs & Co.:
    • Rating: Neutral
    • Target Price: USD 115 » USD 130
    • Analysis: Goldman Sachs & Co. maintained a Neutral rating on Oracle’s stock and adjusted its target price range from USD 115 to USD 130. This suggests a cautious stance, indicating that the stock is expected to perform in line with market expectations.
  8. D. A. Davidson & Co.:
    • Rating: Hold
    • Target Price: USD 105
    • Analysis: D. A. Davidson & Co. maintained a Hold rating on Oracle’s stock with a target price of USD 105. This suggests a neutral stance, indicating that the stock is expected to perform in line with market expectations.
  9. Piper Jaffray Companies:
    • Rating: Overweight
    • Target Price: USD 122 » USD 140
    • Analysis: Piper Jaffray Companies maintained an Overweight rating on Oracle’s stock and adjusted its target price range from USD 122 to USD 140. This implies a positive outlook, suggesting that the stock is expected to outperform the market.

Overall, analysts are expressing optimism about Oracle’s prospects following its strong earnings beat and bullish outlook on AI. The company’s continued focus on innovation and investment in cutting-edge technologies like AI and cloud computing are positioning it for sustained growth and success in an increasingly competitive market.

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