Monness analyst Brian White has maintained their neutral stance on ORCL stock, giving a Hold rating on September 30.
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Brian White has given his Hold rating due to a combination of factors surrounding Oracle’s current market position and future outlook. While Oracle is recognized as a high-quality company undergoing a cloud transformation with promising growth opportunities in generative AI, there are significant concerns about its valuation. The company’s current valuation appears stretched, and its capital expenditures are notably high. Additionally, Oracle is facing negative free cash flow and intense competition in the market.
The macroeconomic environment also presents challenges, adding to the uncertainty of Oracle’s financial trajectory. Despite these concerns, Oracle’s recent executive changes and upcoming financial analyst meeting indicate potential for future strategic shifts. However, until these factors are clarified and the financial targets are updated, a Hold rating reflects a cautious stance on the stock.
In another report released on September 30, RBC Capital also maintained a Hold rating on the stock with a $310.00 price target.