Barclays joins the list of analysts who have issued a lower rating for Oracle Corporation (NYSE:ORCL), as the company reissued its overweight rating for the tech service provider. Barclays reduced its target price to $48 from an earlier $50 estimate.
Oracle Corporation (NYSE:ORCL)’s shares declined 4.21% after the announcement and closed at $39.80 on Friday. Barclays is not the only analyst to downgrade Oracle’s rating as DA Davidson gave a neutral rating to the firm on Friday. Further, Deutsche Bank AG (USA) (NYSE:DB) issued a Hold rating for Oracle from its earlier Buy rating with a new target price of $42.00 down from earlier target of $48.00.
On the contrary, RBC capital raised the rating of Oracle Corporation (NYSE:ORCL) to sector perform with a target price of $46.00 up from their earlier target of $40.00. On an overall, fifteen analysts have a hold rating for Oracle Corporation (NYSE:ORCL) whereas 15 have buy rating with a single analyst having sell rating for the company. Oracle Corporation (NYSE:ORCL) has an average Hold rating with consensus target price of $42.87.
Earlier, Oracle Corporation’s CEO, Larry Ellison, stepped down from CEO to occupy the Chief Technology Officer and Chairman of the Board post. The company announced two new Co-CEOs including Safra Catz and Mark Hurd, who will work with Ellison to take the company forward.
In addition to it, Oracle Corporation (NYSE:ORCL) reported Q1 financial results for 2015 with an increase in revenue to $8.6 billion as compared to $8.37 in the same period last year. The upside of the quarter was the progress it made in cloud services including SaaS and PaaS revenue reaching $332 million for the quarter. Oracle has a GAAP net income of $2.2 billion for the quarter with a dividend of $0.12 per common share.
This article has been written by Prakash Pandey.