UPDATE: Oppenheimer Lowers PT on Oracle Following Disappointing 4Q Results

In a report published Friday, Oppenheimer analyst Brian Schwartz reiterated an Outperform rating on Oracle (NASDAQ: ORCL), but lowered the price target from $40.00 to $37.00.

In the report, Oppenheimer noted, “Oracle reported disappointing 4Q software results and guidance owing to ‘macro weakness in Americas and AsiaPac,' consistent with our preview commentary that suggested the overall enterprise software market has not improved since last quarter. We believe something more secular (not cyclical) is currently pressuring the enterprise software market as cloud computing increasingly entices CIOs to defer investments on large-ticket on-premise software, maintenance and infrastructure in favor of investment decisions to re-architect legacy systems to the cloud. A proof point is that transaction size (not volume) was lower than anticipated in 4Q. Additionally, software purchasing is becoming more decentralized, in our opinion, with decision-making power shifting away from IT and weakening Oracle's selling advantage as a ‘one shop supplier.' Maintain Outperform on valuation.”

Oracle closed on Thursday at $33.21.