Selected stock price target news of the day - December 12th, 2023

By: Matthew Otto

Oracle Q2 Financials Below Expectations Amidst Integration Challenges

Oracle reported a revenue of $12.9 billion for the fiscal second quarter ended November 30, up 5% as reported or 4% on constant currency. However, this missed both the company’s own guidance of 5% to 7% growth and the Street consensus, which had called for $13.1 billion in revenue, up 6.3%. Adjusted earnings per share of $1.34, slightly above $1.33 of consensus. Cloud revenue, encompassing Oracle Cloud Infrastructure and cloud-based applications, stood at $4.8 billion. This marks a 25% increase but decelerating from the 29% growth seen in the August quarter. Cloud infrastructure revenue, showing a 52% growth. This rate represented a slowdown from the 66% growth reported in the previous quarter.

Oracle’s challenges extended to its integration of Cerner, an electronic health records company acquired for $28 billion in 2022. The struggle to fully integrate Cerner impacted Oracle’s overall growth rate, with the legacy software licensing business witnessing an 18% decline from the previous year. Oracle projected future revenue growth between 6% and 8% for the February quarter, or 8% to 10% excluding Cerner. Oracle’s cloud business is now operating at a nearly $20 billion annual revenue run rate.

Analyst Ratings on Oracle Reflect Divergent Views

BMO Capital’s Keith Bachman maintained at Market Perform and lowered the price target from $130 to $126.
UBS analyst Karl Keirstead reiterated a Buy rating and lowered price target from $135 to $125.
Piper Sandler’s Brent Bracelin kept an Overweight rating and decreased the price target from $130 to $125.

Which Analyst has the best track record to show on ORCL?

Analyst Tyler Radke (CITI) currently has the highest performing score on ORCL with 4/6 (66.67%) price target fulfillment ratio. His price targets carry an average of $11.75 (9.31%) potential upside. Oracle stock price reaches these price targets on average within 21 days.

Macy’s Faces $5.8B Bid Amid Real Estate Valuation Surge

Macy’s has become the center of attention as investment firms Arkhouse Management and Brigade Capital threw in a $5.8 billion acquisition offer for the company. Analysts are skeptical about the likelihood of Macy’s accepting the $21 per share cash offer, citing its undervaluation compared to February’s share price of $25 and a below-average 7.2 times price-to-earnings ratio, contrasting with a 10-year average of 9.1 times. The focus on Macy’s real estate adds a new dimension, projected to be worth between $7.5 billion to $11.6 billion, with JPMorgan analyst, Matthew Boss, estimating the total real estate portfolio value at around $8.5 billion, including the flagship Herald Square property valued at $3 billion. Macy’s, currently with a market value of $5.7 billion and $3.16 billion in debt, could unlock more value through potential property divestitures or entertaining a higher bid.

Analyst Downgrades Macy’s Rating to Sell

Citigroup analyst Paul Lejuez downgraded from Neutral to Sell and maintained a $14 price target.

Which Analyst has the best track record to show on M?

Analyst Michael Binetti (CREDIT SUISSE) currently has the highest performing score on M with 10/15 (66.67%) price target fulfillment ratio. His price targets carry an average of $0.59 (4.75%) potential upside. Macy’s stock price reaches these price targets on average within 136 days.

Analyst Bullish on Apple, Anticipating Record iPhone Shipments

The market’s attention is now drawn to the possibility of a significant uptick in iPhone shipments for Apple’s fiscal year 2024. Analyst Daniel Ives suggests that if the current pace of phone upgrades persists, global shipments might surpass the Wall Street estimate of 220 million to 230 million units. Ives, known for his bullish stance on Apple, raised the target price on the stock to an ambitious $250, making him the most optimistic Apple analyst on Wall Street. He highlights the golden opportunity for investors with approximately 240 million iPhones now eligible for an upgrade, coupled with a resurgence in Apple’s services sector expected in fiscal year 2024.

Analyst Boosts Apple Outlook with Increased Price Target

Wedbush’s Daniel Ives maintained Outperform rating and raised the price target from $240 to $250.

Which Analyst has the best track record to show on AAPL?

Analyst Krish Sankar (COWEN) currently has the highest performing score on AAPL with 26/29 (89.66%) price target fulfillment ratio. His price targets carry an average of $24.91 (12.77%) potential upside. Apple stock price reaches these price targets on average within 132 days.