EA a Coiled Spring; Netflix Slashed; Exxon on Top: Street Calls of the Week

investing.com:

Here is your Pro Recap of the top takeaways from Wall Street analysts for the past week: upgrades for Oracle, Electronic Arts, and Exxon Mobil, and downgrades for Texas Instruments and Netflix.

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What happened? On Monday, Evercore upgraded Oracle (NYSE:ORCL) to Outperform with a $135 price target.

What’s the full story? Evercore analysts are upgrading Oracle to Outperform from In Line, as they believe that the recent pullback (-13% since the fiscal first quarter) simply creates a more attractive entry point for a business that it believes is now better positioned to deliver more consistent revenue and earnings growth due to a higher percentage of revenue coming from its cloud solutions.

While Evercore expects that the «lumpiness» in the Oracle Cloud Infrastructure (OCI) business and that Cerner (NASDAQ:CERN) «will continue to create some debate/concern in the near-term,» they believe there are five other thoughts to consider:

1. They believe the apps and infrastructure cloud businesses are now big enough as a percentage of revenue to drive total revenue growth in the high single digits going forward.

2. OCI estimates (50% compound annual growth rate [CAGR] for fiscal 2023 through 2026) may eventually be viewed as too conservative.

3. The “macro storyline continues to favor ‘suites’ and this should help drive steady apps growth and potentially pull through some database/OCI revenue as legacy customers re-platform on the cloud," Evercore wrote.

4. They believe consensus estimates for fiscal 2026 leave room for upside relative to Oracle’s management to guide above expectations.

5. Finally, they believe