KeyBanc upgrades rating on Oracle

KeyBanc believes the Oracle cloud could doubt to $12 bln run-rate inside of 2 years. The company announced a dividend payable on Wednesday August 2nd, 2017.

oracle Keybanc ratingKeyBanc upgraded Oracle (NYSE: ORCL) from Sector Weight to Overweight with a price target of $61.00.

Monika Garg, KeyBanc analyst, sees cloud and AI momentum accelerating growth. “We are upgrading Oracle based on solid cloud execution and partner feedback that increases our confidence in its ability to accelerate the conversion of more than 400K existing customers to its new cloud offerings. New AI and ML functionality could further solidify this multiyear transformation, in our view” She said.

Monika Garg believes the Oracle cloud could doubt to $12 billion run-rate inside of 2 years and sees potential for margins to expand again after years of cloud investment has pressured margins.

FY 2018 EPS estimate is for $2.95 and FY 2019 EPS estimate is for $3.21.

Oracle Corporation also announced a dividend payable on Wednesday August 2nd, 2017. The dividend payment will be $0.190 per share for the quarter which comes to $0.76 on an annualized basis. This dividend represents a yield of $1.52. The ex-dividend date has been established as Monday the 10th of April 2017.

The company’s P/E ratio is 22.33 and the market cap is 204.19B. In the last earnings report the EPS was $2.21 and is expected to be $2.96 for the current year with 4,136,682,000 shares currently outstanding. Next quarter’s EPS is expected be $0.69 with next year’s EPS anticipated to be $3.19.