Analyst Keith Weiss of Morgan Stanley maintained a Hold rating on Oracle, retaining the price target of $320.00.
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Keith Weiss has given his Hold rating due to a combination of factors that reflect both optimism and caution. Oracle’s ambitious revenue and EPS targets for FY30, including a projected $225 billion in revenue and $21 in non-GAAP EPS, indicate a strong growth trajectory. However, these targets are heavily weighted towards the later years, with near-term expectations aligning more closely with current consensus estimates.
Despite the impressive long-term outlook, there are several uncertainties that contribute to the Hold rating. Oracle has not provided specific targets for gross and operating margins, nor has it clarified the capacity investments required to achieve its ambitious goals. Additionally, there is limited visibility into the composition of Oracle’s remaining performance obligations (RPO) balance, which adds a layer of risk. These factors suggest that while Oracle’s long-term potential is promising, there are significant execution risks in the near term that warrant a cautious approach.
Based on the recent corporate insider activity of 64 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.