Goldman Sachs Updates Oracle/BEA Targets, Issues Buy on Oracle (ORCL, BEAS)

Apps & Software

Published: March 6, 2008 8:33 am

Oracle Corp. (NASDAQ: ORCL) is being reinstated as a "Buy" rating in new coverage this morning at Goldman Sachs. The firm notes that with macroeconomic concerns being front and center, shares of the enterprise software giant are down 18% so far in 2008.

It also notes the forward EPS multiples being a mere 15.8 for 2008 and 12.2 for 2009. Both multiples are under the industry average by about 20% and are also at a discount to the S&P. Based on yesterday’s close, Goldman Sachs sees a 23% gain opportunity to its target.

With the acquisition of BEA Systems (NASDAQ: BEAS), Goldman Sachs has issued the following metrics for forward years:

2008 is $1.26 EPS, same as before;
2009 is $1.47 EPS, up from $1.41 before;
2010 is $1.63 EPS, up from $1.60 before.

Jon C. Ogg
March 6, 2008

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