NEW YORK (TheStreet) -- Oracle (ORCL) shares are flat at $43.10 in afternoon trading on Tuesday after the company had coverage initiated with a "hold" rating by analysts at Wunderlich Securities.
The firm also set a $47 price target on the company's shares, a potential 9% upside from the stock's current price.
While the firm applauded Oracle's innovation in the cloud computing and sees the company as one of the industry's leaders in cloud returns computing, weak third quarter results make the firm cautious.
"Oracle's ability to integrate all components, from storage to database and all the way to applications, creates an inherent advantage for all subscribers. Oracle remains the world's most popular enterprise database with approximately 45% of the database market, forcing other vendors to interoperate," analysts said.
"However, the company reported its F3Q15 results with weak revenue and flat EPS growth. The analyst believes that the revenue weakness was due to strong FX headwinds, which impact revenue growth by 6%," they said.
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 revenue growth, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow."