Will This Price Target Increase Help Oracle (ORCL) Today?

NEW YORK (TheStreet) -- Oracle (ORCL) failed to impress with its third-quarter financials, sending shares lower before the bell.

In pre-market trading, the stock had taken off 3.3% to $37.56.

On Tuesday, the software and cloud computing developer reported revenue 4% higher year over year to $9.3 billion. Analysts surveyed by Thomson Reuters had forecast sales of $9.36 billion.

In the three months to February, adjusted net income came in at 68 cents a share, 2 cents below estimates.


WATCH: Oracle Presents Trading Opportunity on Earnings Dip

Jefferies weighed in on the results, noting while cloud bookings improvement is positive (revenues grew 25%), analysts "don't see anything in results/guidance that argues strongly for a change in our view at this point."

Jefferies reiterated a "hold" rating and upped its price target to $37 from $36. The revised price target was a valuation call with modestly higher revenue forecasts.

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Separately, TheStreet Ratings team rates ORACLE CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate ORACLE CORP (ORCL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its notable return on equity, reasonable valuation levels, expanding profit margins, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

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