business

Thomas Weisel Upgrades Oracle to Buy

Analyst Robert Schwartz says the stock's risk/reward is attractive

Thomas Weisel Partners upgrades Oracle (ORCL ) to buy from market perform.

Analyst Robert Schwartz says the stock's risk/reward is attractive. He sees upside potential to $20; downside is limited to $13. Talks with ORCL management indicate activity levels are up in the quarter and trending positively. Don't expect upside impact in this quarter, but it should set up ORCL for its seasonally strong fourth quarter, he says.

He adds that the company's sales and distribution is organized to take advantage of the 2002 selling environment: Vendor rationalization, smaller deal sizes, higher deal volumes, and need for faster ROI. Any potential upside from the maturing e-Business suite of applications and 9iAS should fall to the bottom line, he says. He sees EPS of $0.45 in FY 02 (May) EPS and $0.51 in FY 03.

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