Oracle rises on back of BMO Capital upgrade
Stock was lifted to "outperform" as price hits $41.27
Updated : 14:51
Cloud application provider Oracle's stock climbed higher on Tuesday after receiving an upgrade from BMO Capital.
Shares increased 1.20% in pre-market trading to $41.27 following the upgrade.
The company increased its price target from $45 to $47, reflecting their belief that Oracle will meet its estimates and generate growth in the near future.
"Given stable to higher operating margins, combined with 2% to 3% revenue growth, we believe that operating income will grow by 3.6% in fiscal year 2017 and 3.9% in fiscal year 2018," BMO Capital said.
Oracle's strengths lie in net income, reasonable valuation levels, as well as reasonable debt levels allowing it to cope despite a fairly weak cash flow.
The tech company specialises in providing database software and technology to clients, and is basd in Redwood, California.