Oracle Corp. (ORCL) has teamed up with TIM (Telecom Italia) and Noovle, TIM Group’s cloud company, to provide multi-cloud services for enterprise and public sector organizations in Italy and help them in their digital transformation journey.
Shares of the multinational computer technology company have gained 51.6% over the past year. (See Oracle stock charts on TipRanks)
The combination of Oracle’s next-generation cloud infrastructure, with its built-in security, combined with Noovle’s extensive data center network in Italy, and TIM’s extensive sales network, will aid public and private organizations in addressing the challenges of digital transformation through advanced multi-cloud services, leading to operational efficiency, reduced costs, and improved security standards.
Fabio Spoletini, SVP of South Europe at Oracle commented, “We are pleased to be working with a major Italian operator in boosting digital innovation and the economic recovery of Italy.”
He further added, “Oracle has a considerable footprint in highly-regulated and mission-critical enterprise and public sector environments, making us ideally suited to support customers with data-driven digital transformation objectives based on our secure and high-performing cloud.”
Following a recent meeting with the company’s Investor Relations department, Morgan Stanley analyst Keith Weiss increased the price target on Oracle from $77 to $87 (5.4% downside potential) and reiterated a Hold rating.
Weiss commented, “Oracle is heading into their FY22 with considerable momentum in their Cloud businesses, margin pressure represents a deliberate decision by management to lean into these solid Cloud demand trends (and likely stabilize post-FY22), and investors should see ramping Cloud and total revenue growth through the remainder of the year.”
However, the analyst added, “Coming out of the meetings we tilt more positively on the Cloud trends and potential for revenue acceleration in FY22, but still see margin pressures and a lack of disclosure on the moving pieces of the Oracle equation balancing the risk/reward here.”
Consensus among analysts is a Hold based on 5 Buys, 12 Holds, and 2 Sells. The Oracle average analyst price target stands at $92.56, implying that shares are fairly valued at current levels.
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