Monness analyst Brian White has maintained their neutral stance on ORCL stock, giving a Hold rating today.
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Brian White has given his Hold rating due to a combination of factors that reflect both the strengths and challenges facing Oracle. Despite Oracle’s promising cloud transformation and growth opportunities in generative AI, the company’s current valuation appears stretched. Additionally, Oracle’s capital expenditures remain high, and their free cash flow has turned negative, which raises concerns about financial flexibility.
Moreover, Oracle faces intense competition in the market, and the broader macroeconomic environment is uncertain. While Oracle is expected to meet revenue and earnings estimates for the upcoming quarter, and cloud sales are projected to rise significantly, these positive indicators are tempered by the aforementioned challenges. As a result, Brian White has opted for a Hold rating, suggesting that investors may want to wait for more favorable conditions before making a move on Oracle’s stock.
White covers the Technology sector, focusing on stocks such as Apple, Salesforce, and Elastic. According to TipRanks, White has an average return of 17.8% and a 69.62% success rate on recommended stocks.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $246.00 price target.