Oracle's (NASDAQ:ORCL) Strong Cash Position Gives Them Flexibility

Liking the strong cash position of Oracle (NASDAQ:ORCL), which has a war chest of about $24 billion in investments and cash, Jefferies (NYSE:JEF) raised their price target on the company.

Jefferies said, "i) Our checks on momentum with the Exadata product line remains strong; ii) We continue to model conservative applications growth cc given the improving environment and easier Y/Y comp; iii) We believe our hardware revenues ests are conservative given the low Q/Q growth assumption; and iv) We have modest Q/Q improvement in hardware gross margins and no improvement in Q/Q Sun Service gross margins."

They added that Oracle is in a strong position to do a lot of things because of the flexibility that comes with their cash on hand.

Full year EPS estimates for 2011 and 2012 remain the same at $1.97 and $2.25.

Jefferies maintains their "Buy" rating on Oracle, which was trading at $30.60, up $0.18, or 0.58 percent, as of 12:24 PM EST. They raised their price target on them from $31 to $35.