Buy Oracle Financial; target of Rs 4480: JM Financial

JM Financial 's research report on Oracle Financial

We upgrade Oracle Financial Services Software (OFSS) to BUY on a 19% upside. The stock’s participation in the broader IT sector rally over the last two months has been restricted by muted 3QFY18 results; it has also under-performed global peers over this period. However, given management’s commentary of a robust deal pipeline + a seasonally stronger period ahead, we find current levels attractive to play to its structural strengths.

Outlook

We also raise our FY19/FY20E EPS by 6.6%/6.8% on superior margin management. Our revised INR 4,480 TP (INR 4,020 earlier) is on a 20x implied target PER (unchanged). For all recommendations report, click here

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