Oracle an ‘Outlier in Software,’ Says Analyst Ahead of Q2 Earnings

Oracle (NYSE: ORCL) is set to report its fiscal second-quarter earnings after the close on Monday, and heading into those results, Jefferies analyst Brent Thill provided positive commentary on the stock but remained cautious.

Oracle shares are down around 8.55% in 2022, fairing better than many other technology stocks. In addition, it has risen about 17.5% in the last six months, despite last week's pullback.

In a note to investors reported by TheFly, Thill raised Jefferies' price target on ORCL shares to $85 from $75, maintaining a Hold rating.

The analyst explained that Oracle's share price has outperformed since its “bullish” analyst day on October 20, with investors and shareholders turning bullish on Oracle's plans to speed up revenue growth and become more profitable.

He added that Oracle is “an outlier in software with a bullish outlook amid a deteriorating IT environment,” and he believes the stock can continue moving higher with ongoing execution, however, he remains concerned about the bullish outlook management has been indicating.

According to the analyst rating website TipRanks, out of 21 analysts, eight have a Buy rating on Oracle, 12 have a Hold rating and one has a Sell rating on the stock. The average price target of those 21 analysts is $88.35, representing a potential 10.63% upside.

Last Wednesday, it was announced that Google, Oracle, Amazon, and Microsoft have been awarded a hybrid contract with a ceiling of $9 billion from the Department of Defense to provide enterprise-wide, globally available cloud services across all security domains and classification levels.