"Recent feedback from our larger system integrator contacts was mixed as the pace of new strategic, enterprise-wide business initiatives experienced softer trends within their pipelines," Schwartz wrote in his note. This suggests that a tough IT selling environment for infrastructure software remains, consistent with our prior view, and could restrain Oracle's outlook." Especially of concern for the May quarter is Oracle's European business, as the macro environment there continues to stay weak. Lazard analyst Joel Fishbein, who rates shares "buy" with a $41 price target, says Oracle is likely to be muted in its optimism, as Europe continues to struggle. Fishbeing notes the fourth-quarter is usually Oracle's strongest, and it started the quarter with a strong pipeline. "Oracle entered the quarter with a robust pipeline, which combined with improving sales rep productivity and hardware business could offer potential upside to our estimates," Fishbein wrote.