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Oracle shares fall despite reiterated recommendation

Oracle shares fall despite reiterated recommendation
Shares down

Tech group Oracle Corp (NYSE:ORCL) was reiterated as Neutral with a share price target of $41 by brokers at Wedbush on Friday.

“After a 1Q miss and light EPS guide, we expect ORCL share price upside to be limited, at least until there's better visibility to EPS growth,” said Wedbush in a note.

“Also, meaningful share price upside probably requires that ORCL meets or beats software revenue expectations. Although we think ORCL faces long-term challenges to its database business based on new application development shifting to major public PaaS/IaaS platforms (especially AWS), the company likely has many levers to sustain its earnings power in coming quarters and years. However, until we have better visibility to consistent earnings growth and more regular over-achievement on software revenue, we would stay on the sidelines.”

Oracle shares were down 4.5% to $39.02.

Meanwhile, Xoma Corp (NASDAQ:XOMA) was reiterated as Outperform but with a target reduced to $1.42 by Wedbush.

“Although limited in patient numbers, we believe the emerging efficacy and safety profile support proof-of-mechanism and moving XOMA 358 forward in the clinic. We see additional data releases and updates on the development plan as essential for the stock to regain investor favour,” the broker said.

XOMA shares were down 19.1% to $0.54.

Novavax Inc (NASDAQ:NVAX) shares were dumped to the tune of 84.3% to $1.31 after the vaccine developer said its experimental respiratory vaccine failed an important study. Analysts at Piper Jaffray also cut their price target on the stock to $1 from $14 and downgraded the stock to "neutral" from "overweight."

Lululemon Athletica (NASDAQ:LULU) saw Susquehanna initiate coverage of the stock with a positive rating and $77 price target, a more than 16% upside from Thursday's close. The firm noted more compelling offerings, a great culture of consumer engagement, and realization of operational efficiencies.

But the shares hardly stirred, up 0.3% at $66.26.

Banking behemoth Citi (NYSE:C) shares came off 1.3% to £46.46 after Goldman Sachs downgraded the stock to "neutral" from "buy" in favour of reiterating a "buy" on Bank of America (NYSE:BAC). Goldman also removed Citi from its buy list and cited the failure of earnings to recover and return on equity below management's target.

But it was a bad day for banking stocks, so BoA shares were also down, by 0.9% to $15.52.

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