Bank Of America Says It Is Time To Buy On Oracle

According to Bank Of America, Oracle ORCL is a relative winner given deep and broad stack, customer wallet share gain, recurring maintenance revs (~40% of total) and growth from Trifecta of prod cycles. Bank Of America said that, despite Q4 being seasonally strongest, ORCL has been weak (-16% since 5/1) on macro concerns and reports that CY:Q1 EMEA server sales were -20% y/y. “We're comfortable with license revenue of $3.6bn (+15% y/y) and pro forma EPS of $0.70 (cons $0.71). Aided by 1) weaker US $ which could add 1-2% (Chart 2) and 2) strength in software spending in seasonally strong May Q, license could be closer to the high end of guide range of +9-19%. Our research suggests strong demand and execution.” Oracle closed yesterday at $31.16.