On Tuesday, TD (TSX:TD) Cowen maintained a positive outlook on Oracle Corporation (NYSE:ORCL), reaffirming a Buy rating and a $210.00 price target for the stock.
"ORCL delivered a solid 2Q w/ 9% cc rev growth at the high-end of guide," analysts at the firm said.
The company's Oracle Cloud Infrastructure (OCI) saw a notable 52% growth in constant currency, surpassing the analyst's estimate of 48%. This growth, combined with an acceleration in both OCI and Cloud Database growth, is anticipated to persist into the second half of the fiscal year.
Despite the positive performance, Oracle experienced a quarter-over-quarter decline in Remaining Performance Obligations (RPO), which did not align with higher market expectations, leading to an approximate 8% drop in its share price after hours. However, the analyst emphasized that RPO is a variable metric and is likely to show stronger trends in the second half.
The recent pullback in Oracle's share price was described as a buying opportunity by the analysts.
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