Rising Sun: Oracle Shares Expected to Keep Growing on Sun Microsystems Buy

Oracle (ORCL) completed its $7.4 billion acquisition of Sun Microsystems back in January, but at least one analyst still expects to see shares of the business software and hardware company rise as a result.

In a research note Tuesday (via InformationWeek), Wells Fargo (WFC) analyst Jason Maynard predicted the company's stock could grow as much as 20% in the next 12 months because of higher profit margins and IT market share from combining with Sun.

Oracle's share prices today reflect only the cyclical recovery in the U.S. economy and don't account for the additional profits from the Sun integration, according to Maynard, who has an outperform rating on the stock. Shares grew 1.42% Wednesday to $25.74.

Other analysts also agree that Oracle has room to grow. The average rating for the stock is a buy, according to a First Call survey of 29 analysts.

Oracle, which is scheduled to post earnings Thursday, grabbed public attention earlier this month when it hired former Hewlett-Packard (HPQ) CEO Mark Hurd as its co-president. HP has sued Hurd in response, alleging that he risks violating confidentiality agreements by accepting the position. Oracle became an HP competitor in the server industry when it acquired Sun.

Increase your money and finance knowledge from home

How Financial Planners go Grocery Shopping

Learn to shop smart and save.

View Course »

Getting out of debt

Everyone hates debt. Get out of it.

View Course »

Add a Comment

*0 / 3000 Character Maximum

1 Comment

Filter by:

ORacle and others have a huge upside! I have set up a place that the poor and middle class in the country can start to get some of this tax money back. It is our turn to have a piece of the action. Here is my way to get your loot back. Just google EASY STOCK CASH and click the first link. Once you get there, go right to the PENNY STOCK page to see what the rich don't want you to know.

September 15 2010 at 9:26 PM Report abuse -1 rate up rate down Reply