Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Goldman Reinstates Oracle at Sell, Upgrades Gitlab and Atlassian to Buy as it Rebalances Software Ratings

Stock Markets Jun 27, 2022 16:10
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters

By Sam Boughedda

Goldman Sachs analyst Kash Rangan reinstated Oracle (NYSE:ORCL) at Sell in a note on Monday, which included various rating changes in the software sector.

The analyst also upgraded Gitlab (NASDAQ:GTLB) and Atlassian Corp. (NASDAQ:TEAM) to Buy from Neutral, downgraded Altair Engineering (NASDAQ:ALTR) to Sell from Neutral, and downgraded Informatica (NYSE:INFA) to Neutral from Buy as part of a rating rebalance.

"As we continue to look at our coverage through the lens of a weaker macro-backdrop, we see DevOps holding elements of counter-cyclicality due to its easy implementation, high value proposition and low market penetration, leading us to upgrade GTLB and TEAM," said Rangan. "Conversely, we identified companies with potential for further downside, such as ALTR (top-line risk via macro weakness) and INFA (slower cloud transition/higher investments). We reinstate Oracle with a Sell rating given our view that long-term success faces an uphill battle as it attempts to compete against established cloud peers and continues to lose share in its core business to both mature and emerging vendors (Snowflake, MongoDB)."

In the broader software sector, Goldman Sachs believes net new business comps will ease in the third quarter after tough comparisons in the second quarter.

"While software is late-cycle and investors are rightly wary of relatively unchanged FY forecasts, we revert to our intrinsic analysis as a backstop to the divergence between these companies’ strong business models and current valuations. We maintain our view that profitable growth software can serve as a defensive asset class during challenging economic conditions," the analyst concluded.

Goldman Reinstates Oracle at Sell, Upgrades Gitlab and Atlassian to Buy as it Rebalances Software Ratings
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email