Evercore ISI analyst Kirk Materne has increased the price target for Oracle (NYSE: ORCL) to $145.00 from $130.00, maintaining an Outperform rating. The raised price target comes after Oracle’s OCI revenue growth of 52% in constant currencies, meeting expectations. Materne highlighted the strength in Oracle’s RPO, which grew 41% in constant currencies, excluding Cerner, reaching $80 billion.
The analyst emphasized that Oracle continues to benefit from significant customer wins related to OCI, with a promising pipeline of sovereign deals expected to drive growth in FY25. Materne pointed out that OCI revenue grew $175 million sequentially, demonstrating consistent momentum. Oracle’s Strategic SaaS revenue also showed positive growth, with Fusion ERP up 20%.
Looking ahead, Materne remains optimistic about Oracle’s growth prospects, especially in OCI. He expects continued momentum in OCI into FY24, with overall growth in the high single digits in FY25. Materne believes that revenue recognition may remain lumpy in the near term due to data center capacity constraints but is positive about the outlook into FY25.
Overall, Materne highlighted several key takeaways from Oracle’s recent performance, including steady growth expectations, increasing RPO, and the company’s commitment to expanding data center capacity to support OCI. Based on the strong fundamentals, Evercore ISI has raised Oracle’s price target to $145, reflecting a positive outlook for the company’s future performance.
Frequently Asked Questions (FAQs) Related to the Above News
What is Oracle's new price target according to Evercore ISI analyst Kirk Materne?
Oracle's new price target is $145.00, increased from $130.00, with an Outperform rating maintained.
What were some highlights from Oracle's recent performance mentioned by Materne?
Materne highlighted Oracle's OCI revenue growth of 52% in constant currencies, RPO growth of 41% in constant currencies, excluding Cerner, and a promising pipeline of sovereign deals expected to drive growth in FY25.
What growth prospects did Materne highlight for Oracle, especially in OCI?
Materne expects continued momentum in OCI into FY24, with overall growth in the high single digits in FY25, driven by significant customer wins and strategic SaaS revenue growth.
What does Materne expect regarding revenue recognition in the near term for Oracle?
Materne mentioned that revenue recognition may remain lumpy in the near term due to data center capacity constraints but is positive about the outlook for FY25.
What are some key takeaways from Materne's analysis of Oracle's performance?
Materne highlighted steady growth expectations, increasing RPO, and Oracle's commitment to expanding data center capacity to support OCI as key takeaways from the company's recent performance.
Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.
