Wedbush announced on Friday that they have initiated coverage of computer software provider, Oracle Corporation(ORCL).
The firm reported that they have began coverage on ORCL, and have given the company a rating of “Neutral,” and a price target of $36. This price target suggests a 10% increase from the stock’s current price of $32.08.
An analyst from the firm commented, “we believe Oracle is a large, liquid, and relatively defensive software investment due to its heavy mix of maintenance revenue, broad product portfolio, and diverse customer base… Relative to consensus, we expect ORCL to be somewhat challenged on revenues, but to meet or beat on EPS going forward… Neither our valuation nor our 12-month outlook provides a strong basis for accumulating shares.”
Oracle shares were mostly flat during premarket trading Friday. The stock is up 24% YTD.
The Bottom Line
Shares of Oracle Corporation (ORCL) have a .75% dividend yield, based on last night’s closing stock price of $32.03. The stock has technical support in the $28-$29 price area. If the shares can firm up, we see overhead resistance around the $33-$35 price levels.
Oracle Corporation(ORCL) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.