Oracle (ORCL) Stock: $90 Target And Outperform Rating

By Amit Chowdhry ● Jul 4, 2022
  • The shares of Oracle Corporation (NYSE: ORCL) have received a $90 price target from Exane BNP Paribas. These are the details.

The shares of Oracle Corporation (NYSE: ORCL) have received a $90 price target from Exane BNP Paribas. And Exane BNP Paribas analyst Stefan Slowinski upgraded Oracle to an “Outperform” rating from a “Neutral” rating.

Slowinski adjusted the rating while citing defensive qualities that are attractive in the current market.

“With Oracle down 32% from its peak, the shares now trade on 12x forward EV/EBITA. While this is not far from the historic average, Oracle is now growing much faster. Oracle’s EBITA was ~USD15-17 billion annually from FY2013-2022,” wrote Slowinski in a research note. “Revenue growth is accelerating from a 2% CAGR over 10 years to (more than 7%) over the next 3 years. Using our valuation framework, outlined in our March sector report, which takes into account revenue growth (50% weighted at 4.1x CY23 EV/Sales for Oracle) and profitability, including sbc, (50% weighted 19x CY23 EV/EBITA for Oracle).

Slowinski now expects EBITA to grow to $22 billion in 2025. 

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