NEW YORK (TheStreet) -- Shares of Oracle (ORCL) - Get Report are gaining 2.08% to $39.94 in late morning trading on Wednesday after the enterprise software provider's stock rating was raised to "neutral" from "underweight" at JPMorgan.
The firm raised its price target to $38 from $37 after the stock underperformed the S&P 500 for the past 18 months.
"[T]he flow of results and media reports has driven sentiment to a very negative point, and typically this correlates to a low set of expectations," JPMorgan analysts explained in a note.
Redwood City, CA-based Oracle faces easy year-over-year comparisons and lower estimates this year.
"The bottom line is that Oracle currently enjoys a period of very easy revenue and earnings comparisons, at a time when the material FX headwinds of FY16 seem to be abating," analysts explained, adding that "it is clear that forecasts for Oracle have been on a declining trend for quite some time, and not only due to currency fluctuations."
Additionally, Moody's Investors Service issued an A1 rating to Oracle's proposed senior unsecured notes and changed its rating outlook to "negative" from "stable." Oracle intends to use the proceeds for general corporate purposes, such as buybacks and acquisitions.
Separately, Oracle has a "buy" rating and a letter grade of B+ at TheStreet Ratings because of the company's increase in net income, reasonable valuation levels, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share.
You can view the full analysis from the report here: ORCL
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 article's author.