NEW YORK (TheStreet) -- Shares of NetSuite (N) are advancing 8.26% to $90.85 this afternoon as analysts speculate the likelihood of Oracle (ORCL) purchasing the provider of cloud-based financials and enterprise resource planning.
After speaking with partners in the "NetSuite ecosystem," JPMorgan analysts believe the company has large deals in its pipeline, TheFly reports. Timing for the deals remains uncertain, JPMorgan added.
Cowen analysts, on the other hand, said the likelihood of an Oracle takeover is low given "litigation risks, product overlap and valuations," Barron's reports. Sources told Cowen analysts that an Oracle acquisition could surface by tomorrow evening when NetSuite reports earnings, Barron's noted.
"It's possible that there could be another buyer outside of ORCL," Cowen continued in an analyst note according to Barron's. "However, we think that the potential list of acquirers is very small, with Salesforce (CRM) being the only logical strategic fit."
Additionally, NetSuite is slated to report second quarter results after Thursday's market close.
Analysts expect NetSuite to post earnings of 3 cents per share on revenue of $230.58 million for the fiscal 2016 second quarter.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate NETSUITE INC as a Sell with a ratings score of D. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
You can view the full analysis from the report here: N