Oracle downgraded to Hold at Societe Generale on valuation

Societe Generale analyst Richard Nguyen downgraded Oracle to Hold from Buy with an unchanged price target of $93. While the firm said it continues to like Oracle’s fundamentals, including its "strong backlog" and margin improvement potential, the projected twelve month total return is below the firm’s threshold for a Buy so the firm is lowering its rating on valuation grounds. Following the company’s fiscal Q3 report and Q4 guidance, the firm’s revenue forecasts for FY23-24 are "virtually unchanged," though it increased its FY23 EPS estimate by about 4% and its FY24 EPS estimate by about 3% on strict cost control and a lower tax rate.