BofA is Oracle’s recent cloud customer
So far in this series, we’ve discussed Oracle’s (ORCL) fiscal 4Q17 and fiscal 2017 results. We also discussed Oracle’s dominant position in the ERP space and in financial planning software.
Earlier this week, Oracle announced that Bank of America (BAC) is a recent customer of its ERP cloud offering. Oracle’s CEO, Mark Hurd, said, “Oracle will deliver Bank of America the most modern, complete, global ERP applications in the world.”
Oracle is not the only player keen to strike a deal with a prominent bank. Amazon (AMZN), an undisputed leader in the cloud space, is pushing its AWS (Amazon Web Services) to global banks like Goldman Sachs (GS) and JPMorgan Chase (JPM).
Industry’s analysts view of Oracle Stock fiscal 4Q17 results
Oracle’s revenue growth and better-than-expected fiscal 4Q17 results prompted Merrill Lynch to raise its price target on Oracle stock from $54 to $62. The stock continues to be a “buy” by the research firm.
In its research report, Merrill Lynch highlighted several parameters that led it to raise Oracle’s target price. They included:
- lower-than-expected fall in license sales
- third consecutive quarter of operating income growth
- cloud gross margins, though currently flat at 60%, that could cross ~75% by fiscal 2019
- growth in its Database business
Stifel Research raised Oracle’s price target from $47 to $52. BTIG raised Oracle’s price target from $47 to $58. Both Stifel and BTIG have a “buy” rating on Oracle.
Oracle’s fiscal 4Q17 results prompted a number of analysts to raise their price targets for Oracle stock.