Goldman Sachs Adds Oracle to Conviction Buy List

Sep 12, 2011
J. Webster
Comments Off on Goldman Sachs Adds Oracle to Conviction Buy List

If you’re a stock, there’s a list that you want to be on, and that’s Goldman Sach’s conviction buy list. Oracle, the enterprise software company headed by Larry Ellison, was just added to the list today by Goldman Sachs.

Goldman, which already had a Buy rating on Oracle shares, this morning added the company to its Americas Conviction Buy List.

“We believe the shares’ recent pullback provides an even more attractive entry point.” analyst Heather Bellini writes in a research note. “Even off our lower-than-consensus [calendar 2012 EPS estimate of $2.44 a share] Oracle trades at 11X, which compares to its five-year average of 15X and trough during the financial crisis of 9.4X,” only 12% downside.

“In fact, we believe Oracle with its maintenance stream (51% of FY 2012 estimated sales) and exceptional cost control will be able to navigate the choppy waters and protect EPS better than any of its mega-cap peers against a challenging macro backdrop.”

Source: Forbes

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