Oracle (ORCL) is expected to post positive results in a seasonally strong fiscal Q4, Oppenheimer said in a Monday note.
The company is scheduled to release its fiscal Q4 financial results on Wednesday.
Robust capital spending from Oracle's largest partners reflects greater-than-expected IT demand for the company's compute and infrastructure software, Oppenheimer analysts said.
For fiscal Q4, the analysts estimate Oracle's pro-forma EPS to grow 16% year over year to $1.98 and revenue to rise 19% to $18.9 billion. Oppenheimer also projects 96% revenue growth for Oracle Cloud Infrastructure for the quarter.
Further, Oracle could see upside on its margins and earnings, as well as medium-term financial guidance, based on its recent restructuring announcement, seasonally low job openings, and potential upside to hyperscaler gross margin deployments from BYOE initiatives and company efficiencies, the note said.
Oppenheimer reiterated Oracle's stock rating at outperform and raised the price target to $275 from $235.
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