Oracle (NASDAQ:ORCL) Results to be Driven by Core Database Business

With the overall enterprise IT expenditures continuing to improve, Gleacher sees Oracle (NASDAQ:ORCL) results in the second quarter being driven be their core database business.

Gleacher noted, "Given our view that the overall enterprise IT spending environment continues to improve, we expect ORCL to post solid F2Q results driven by its core database business. Also, we expect its Exadata business to remain strong and be a key driver for its hardware revenue growth and margin expansion. We note, however, that the revenue upside in its 2Q results could be more modest than the last quarter given that its F2Q guidance was above the Street, and its F1Q guidance, by its own admission, was more conservative than other years. With our preliminary industry-wide checks indicating continued steady improvement in the enterprise IT spending environment into 1H of next year, we believe ORCL is well-positioned to provide at least an in-line F3Q guidance."

Gleacher & Co. maintains a "Buy" rating on Oracle, which closed Thursday at $29.26, up $0.03, or 0.10 percent. Gleacher raised their price target on them from $30 to $36.