In a report released today, Keith Weiss from Morgan Stanley maintained a Hold rating on Oracle, with a price target of $246.00.
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Keith Weiss has given his Hold rating due to a combination of factors that highlight both the strengths and uncertainties surrounding Oracle’s current financial trajectory. Oracle has shown impressive stock performance, significantly outpacing its peers, largely driven by its perceived advantage in the AI infrastructure sector. This perception was bolstered by strong bookings commentary and a significant contract announcement, presumably with OpenAI, which de-risked some of the growth expectations.
However, despite this momentum, there are concerns about Oracle’s margin profile, particularly as the company has not reiterated its previous operating margin targets and has made headlines for headcount reductions to support AI investments. Additionally, while Oracle’s revenue targets for FY29 appear on track and may even be revised upwards, the pressure on gross margins suggests that the current stock price already reflects this potential upside. Consequently, the Hold rating reflects a cautious stance, awaiting more clarity on long-term margin sustainability.
In another report released today, J.P. Morgan also maintained a Hold rating on the stock with a $210.00 price target.
Based on the recent corporate insider activity of 56 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ORCL in relation to earlier this year.