Oracle, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Derrick Wood from TD Cowen reiterated a Buy rating on the stock and has a $375.00 price target.
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Derrick Wood’s rating is based on several compelling factors that highlight Oracle’s growth potential. He anticipates a significant increase in Oracle’s cloud infrastructure demand, particularly from its largest customers, which is expected to drive strong growth in multi-cloud deployments and Fusion migrations. Additionally, Wood notes that the growth potential of Oracle Cloud Infrastructure (OCI) in fiscal year 2026 is not fully appreciated or modeled by the market, suggesting a strong outlook for OCI.
Wood also points to steady demand for Oracle’s Cloud ERP and a notable rebound in the Cerner business, which is expected to shift from negative to positive growth. Furthermore, there is robust demand for Oracle’s multicloud database solutions, which could significantly boost the Cloud Database business growth. The impact of a new deal with OpenAI, expected to contribute substantial revenue by fiscal year 2028, also supports Wood’s optimistic outlook. These factors, combined with Oracle’s strategic initiatives and market position, underpin Wood’s Buy rating for Oracle’s stock.
In another report released today, Melius Research also maintained a Buy rating on the stock with a $370.00 price target.