Oracle, the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Keith Bachman from BMO Capital maintained a Buy rating on the stock and has a $275.00 price target.
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Keith Bachman has given his Buy rating due to a combination of factors that highlight Oracle’s potential for growth and profitability. He anticipates that Oracle’s strong demand in artificial intelligence, particularly aided by its collaboration with OpenAI, will significantly accelerate growth through fiscal year 2028. Despite some pressure on margins due to a mix of factors and increased capital expenditure, Bachman believes Oracle’s robust revenue and operating income growth will support the stock’s performance.
Furthermore, Bachman introduces new fiscal year 2028 estimates, projecting substantial revenue growth and a notable increase in non-GAAP earnings per share. Although there are expected decreases in gross and operating margins, the overall financial outlook remains positive with a forecasted 21.5% growth in operating income. These factors contribute to his decision to raise the target price to $275, indicating confidence in Oracle’s ability to outperform in the market.
Bachman covers the Technology sector, focusing on stocks such as Oracle, HubSpot, and Check Point. According to TipRanks, Bachman has an average return of 8.9% and a 53.96% success rate on recommended stocks.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $281.00 price target.