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

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