Oracle’s Q2 was uninspired says Wedbush

Oracle Corporation shares were lower on Friday despite brokers at Wedbush raising their price target on the stock which they reiterated as a Neutral recommendation

Oracle had a dull patch

Oracle Corporation (NYSE:ORCL) shares were lower on Friday despite brokers at Wedbush raising their price target on the stock which they reiterated as a Neutral recommendation.

The broker said the tech stock’s second quarter had been “uninspiring”. But it raised the 12-month price target to $42 from $41.

“Oracle’s 2Q results and guidance weren't inspiring, and dollar strengthening is pushing out the timeline for EPS stabilization. The company continues to execute inconsistently relative to guidance, even when adjusted for currency, giving investors ample reason to question its bullishness on its cloud transition,” Wedbush said.

“However, we're incrementally more positive for a few reasons: (1) the mechanics of the transition suggest EPS should begin to grow next year, at least in constant-currency terms; (2) database sales appear to be turning up, as our checks suggest ORCL has expanded its use of unlimited license agreements (ULAs) to lock in database customers and prevent bring-your-own-license (BYOL) of Oracle to Amazon AWS (NASDAQ:AMZN); (3) valuation looks cheap, especially if ORCL can begin to grow earnings and cash flow.”

Oracle shares were down 4.2% to $39.16 on Friday.

In another sector that, most recently, has been battered by comments from US President-elect Donald Trump, Ascendis Pharma (NASDAQ:ASND) shares were firmer on Friday after being reiterated an Outperform with price target of $31 by Wedbush.

“We see Ascendis as an attractive investment opportunity as the company has a growing pipeline of clinical candidates for endocrine diseases led by weekly dosed TransCon human Growth Hormone (TC-hGH) being tested in a Phase 3 clinical program,” the broker said.

Ascendis shares were up 0.4% at $20.98.

Meanwhile, Intercept Pharmaceuticals Inc (NASDAQ:ICPT) shares raced higher after Wedbush reiterated an Outperform recommendation and price target of $22 after strong sales from its Symphony Health sales and volume estimates for Ocaliva.

Intercept shares were up 3.2% to $109.50.

Finally, Prairie Provident Resources Inc (TSE:PPR) were 1.3% higher at C$0.78 after brokers at Mackie Research maintained the stock at Buy and a $2.00 price target.

“Through an active drilling program targeting the Manville, we expect PPR to demonstrate substantial production and cash flow growth in 2017. Although its early days, PPR’s Quebec acres could hold substantial resource potential. Given PPR cash flow base generated from its Western Canadian assets and underleverage balance sheet, we believe PPR is a relative lower risk approach to participate in the Quebec Utica shale play,” Mackie said in a note.

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