UPDATE: D.A. Davidson Initiates Coverage On Oracle On Transition To Cloud

In a report published Wednesday, D.A. Davidson & Co. analyst Jack Andrews initiated coverage on Oracle (NYSE: ORCL) with a Neutral rating and $46.00 price target.

In the report, D.A. Davidson & Co. noted, “Despite historically attractive fundamentals, we see no urgency to commit new capital to ORCL shares. Having reengineered its software applications to operate in a software-as-a-service (SaaS) model, Oracle has the potential and resources to become a significant force in the cloud. The company's hardware business appears to have bottomed and should contribute to growth moving forward. That said, we would prefer to see a more consistent record of quarterly financial results meeting company guidance, further evidence of sustained organic growth in the cloud businesses, and demonstrated traction in upcoming product cycles.”

Oracle closed on Tuesday at $41.89.