Goldman Sachs raised the firm’s price target on Oracle (ORCL) to $185 from $153 but keeps a Neutral rating on the shares. The stock declined after Q2 revenue missed expectations and Remaining Performance Obligations – RPO – decelerated sequentially by two percentage points, the analyst tells investors in a research note. As investor focus pivots towards the CapEx investment cycle ahead, Oracle’s EPS growth may be weighed down by gross margin pressures and limited operating leverage, while its free cash flow growth may be muted from elevated CapEx spend over the next 2-3 years, Goldman Sachs added.
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