RBC Capital Reiterates Sector Perform Rating on Oracle

RBC Capital analyst Rishi Jaluria reiterated a Sector Perform rating and $190.00 price target on Oracle (NYSE: ORCL).

“Mixed F4Q w/ Cloud Revenue Short of Consensus; $20B Incremental Capital Raise Planned; Oracle reported mixed F4Q results w/ Total Revenue (+21% YoY/ +20% YoY cc) modestly above cons., Cloud Revenue (+47% YoY/+46% YoY cc) below cons. of ~48%, and EPS of $2.11 above cons. of $1.96, sending shares down ~10% AMC.

That said, OCI revenue growth of 93% YoY/92% cc was ~in-line with cons. of ~92%, and we’re pleased to see Total RPO ($638B) growth accelerate to 363% YoY (vs. 325% QoQ).

Mgmt also noted that BYOH portions of Oracle’s large AI contracts now total $75B, which will reduce its financing requirements. Maintain Sector Perform.”

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