Analysts at Baird and Phillip Securities initiated coverage of Oracle (ORCL) stock with a Buy rating, as they expect the enterprise software and cloud company to benefit from artificial intelligence (AI) tailwinds. Baird analyst Robert Oliver assigned ORCL stock a Buy rating with a price target of $365, calling it the “AI juggernaut for the information age.” These Buy ratings come despite a recent report by The Information, which raised concerns about Oracle’s AI Cloud margins.
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Baird Analyst Is Confident About Oracle’s Growth Story
Oliver believes that Oracle has “positioned itself at the center of the most significant trend in the history of computing: AI.” He added that the combination of resources that Oracle offers, such as scaled infrastructure, database, networking, and applications, creates a “virtuous circle” that warrants a premium valuation.
The analyst expects the company to benefit from the accelerating investments in AI infrastructure and the convergence of AI, data, and use cases as companies move from training to inference.
Phillip Securities Is Bullish on ORCL Stock
Meanwhile, Phillip Securities initiated coverage of ORCL stock with a Buy rating and a price target of $350. Phillip Securities highlighted that Oracle’s remaining performance obligations (RPO) backlog surged 359% in Q1 FY26 to $455 billion, driven by major multi-cloud partnerships, AI training and inference deals, and the Project Stargate.
The firm noted that Oracle expects Cloud Infrastructure to reach $144 billion by Fiscal 2030, implying a 68% CAGR (compound annual growth rate) over four years. The analyst believes that Oracle is capable of accelerating profit growth by boosting capacity and converting its backlog. Notably, strategic deals with major cloud service providers and chipmakers support AI training, inference, and database integration, driving 55% year-over-year infrastructure growth and positioning the company for long-term recurring revenue.
Phillip Securities expects Oracle’s growth to be driven by cloud expansion, long-term contracts, and rising RPO. The firm believes that ORCL’s high RPO backlog supports its premium valuation.
Is ORCL Stock a Good Buy?
Currently, Wall Street has a Moderate Buy consensus rating on Oracle stock based on 27 Buys, eight Holds, and one Sell recommendation. The average ORCL stock price target of $342.58 indicates about 19% upside potential from current levels.
