Oracle Corporation (NYSE: ORCL) struggled to drive profitability in recent quarters as transition to cloud required hefty investments. Brian White, Analyst at Drexel Hamilton, however, is confident of the fact that the cloud transition is behind Oracle now as it now looks to drive high operating profits.

Oracle has been an average performer in the past few quarters but has struggled to drive profitability. The company posted quite a handsome Q3FY16 earnings report with a revenue of $9 billion slightly below the Street’s $9.12 billion estimate and showing a 3% yearly decline from year ago quarter. EPS was reported at $0.64 beating $0.62 street estimate. The guidance expects sales growth within a range of -2 to +1 % on yearly basis, while, EPS is expected to come in between $0.82 – $0.85.

The analyst observed that the cloud measurements for Oracle have grown sufficiently and remain strong. The company plans to invest $10 billion in share repurchase program with an upside potential visibility for EPS. The analyst recommended the stock as buy for the investors looking for a defensive technology ticker coupled with quickly growing cloud portfolio. The bookings for Oracle Software as a Service (SaaS) and Platform as a Service (PaaS) grew by 77% in Q3 compared to 75% growth in Q2 with deferred revenue reaching 96%, exclusive of foreign exchange impact. The revenue from cloud during Q3 was $737 million, with $585 million from SaaS and PaaS and $152 million from IaaS. The analyst updated the estimates for the year 2017 EPS to $2.78 from prior $2.67.

The analyst maintained a Buy rating on the stock. He raised his price target to $51 from a previous PT of $46. The analyst opinion for the stock has a total of 39 ratings out of which 7 are strong Buy, 14 are Buy, 13 are Hold and five are Underperform. There are no sell ratings as the stock is traded at $40.28 seeing a 4% rise since the opening of the market today