Bliston Asset Management, the Hong Kong based wealth management firm maintained its bullish expectations on the future performance of the Oracle Corporation (ORCL) as the company works towards operational efficiencies as part of its business model focus on an asset-light structure.

“What we like about Oracle’s business model is that resources are not tied up physical assets, but invested into innovation and business development. We see this as being a primary driver towards the powerful return on invested capital (ROIC) and we expect their asset-light operations to be further optimized later this year as they seek to migrate 95% of their products to the cloud. Compare that figure to its present position of 65% and we can clearly see the potential value opportunity through further streamlining,” commented Bliston Asset Management’s Chief Tech-Analyst.

When considering the future performance value of a stock, investors look at the competitive advantages of a company to determine sustainability. Warren Buffet conceptualized this component as an ‘economic moat’, essentially measuring the return on invested capital less the costs incurred of securing the capital. Economic Castle analysis then identifies the potential of economic gains through a predictable market cycle to determine which companies are most likely to generate economic value during foreseeable future.

“As a leader in its industry continually posting impressive earning, Oracle is ideally positioned to continue rewarding investors as we believe it possesses one of the most attractive business models of all the equities within our own portfolio. A combination of leading innovation, explosive returns on investment and a balance sheet light of property, plant and equipment (PPE) assets positions the company to focus on its customers and their needs.”

“Our analysis shows and points strongly towards an upside gain for investors that Oracle will continue to reward investors over the foreseeable future. As it currently stands the stock is very fairly priced around the $44 mark with a strong potential upside likely to reach the $62 towards the end of 2015,” concluded Bliston’s Chief Tech-Analyst.