Скачать или смотреть Analyst Insight: Citigroup Initiates Oracle With Buy and Views Sun Acquisition As Attractive

Citigroup Equity Research sent a note to clients early Tuesday initiating shares of Oracle (NASDAQ:ORCL) with a Buy rating and a $32 target price.

Citigroup analyst Walter H Pritchard said they forecast Oracle capturing $1.7 billion in incremental operating income from Sun in 2011 and $2.6 billion in 2012, exceeding Oracle's own targets.

Pritchard said that "In the long run, appliances like Exadata have the potential to reverse the fortunes of Sun's hardware business, and though we are in the early stages, we expect appliances to grow well over 30% in 2014." Pritchard went on to say, "We believe Oracle's nearly 50% share of database could move higher as favorable platform shifts continue. SaaS represents a threat to apps at the edges, but we believe Fusion and acquisitions will allow Oracle to take share."

In terms of estimates, Citi said, "We estimate $35.2B in FY11 revenue and $1.99 in EPS (both ahead of consensus. Our $32 price target is based on 16x FY11 EPS, which is a slight premium to the S&P 500. Shares held a premium valuation prior to Sun acquisition announcement and we think can return there as concerns dissipate."