Oracle Downgraded To Sector Weight By Pacific Crest Analysts

By Caitlin HustonMarketWatch Pulse

Pacific Crest Securities analysts downgraded Oracle Corp. to sector weight from overweight and lowered their fiscal year earnings estimates due to a "transition year" for Oracle. The analysts lowered their 2016 earnings per share projection to $2.56 from $2.70 and lowered the revenue estimate to $37.2 billion from $38 billion. Oracle is transitioning its offerings to the cloud, which the analysts say will be good long term. But the analysts say they expect Oracle to face difficulties during the transition and new license and maintenance revenue to drop, causing them to lower estimates.

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