Oracle: Wedbush cuts target price

(CercleFinance.com) - Wedbush maintains its "neutral" ratin on the Oracle stock, although has cut its target price from 56 dollars to 49 dollars, on the backdrop of what it considers to be "structural difficulties" in the cloud.


According to the broker, the decision taken by the Californian software designer to make some 1,300 redundancies in Europe, which it says is a significant figure, combined with the recent slowdown in hiring at the group is a good illustration of the problems that Oracle is encountering in its transfer to the cloud.

However, Wedbush considers, that the share could prove to be less volatile than its peers in the software sector during this phase of market turbulence, due to the weakness of its beta and its valuation levels, characteristics that analysts say make it a "reasonably defensive" share in the current context.


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