Oracle: Jefferies raises target price
(CercleFinance.com) - Jefferies maintains its buy rating on Oracle shares, increasing its target price for them from $105 to $125.
The analyst believes that Oracle's target sales of $65bn by 2026 is credible, although it would imply average annual organic growth of 11% over 4 years, i.e. from 2022 to 2026.
However, assuming that Oracle can deliver 17% y-o-y growth in 2023 (in line with expectations), the $65bn target would only imply 9% growth over 3 years, Jefferies points out.
"Additional expense rationalization and buybacks should support additional EPS upside", the broker adds.
In its analysis, Jefferies also estimates that annual EPS rising to $7.5 in 2026 could potentially lead to around a 30% rise in its share price.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The analyst believes that Oracle's target sales of $65bn by 2026 is credible, although it would imply average annual organic growth of 11% over 4 years, i.e. from 2022 to 2026.
However, assuming that Oracle can deliver 17% y-o-y growth in 2023 (in line with expectations), the $65bn target would only imply 9% growth over 3 years, Jefferies points out.
"Additional expense rationalization and buybacks should support additional EPS upside", the broker adds.
In its analysis, Jefferies also estimates that annual EPS rising to $7.5 in 2026 could potentially lead to around a 30% rise in its share price.
Copyright (c) 2023 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.