In a report released today, Derrick Wood from TD Cowen reiterated a Buy rating on Oracle, with a price target of $325.00.
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Derrick Wood has given his Buy rating due to a combination of factors including Oracle’s anticipated strong growth in its cloud services and infrastructure. The company is expected to see a significant increase in demand for its Oracle Cloud Infrastructure (OCI) and Cloud ERP solutions, driven by multi-cloud deployments and Fusion migrations. Additionally, the rebound in the Cerner business and robust demand for multicloud databases are expected to contribute to Oracle’s growth trajectory.
Moreover, Oracle’s recent deal with OpenAI to expand U.S. Datacenter capacity is projected to significantly boost revenue, with expectations of over $100 billion in incremental revenue performance obligations (RPO). This deal, along with Oracle’s strategic initiatives, positions the company for a high revenue compound annual growth rate (CAGR) and substantial earnings per share (EPS) growth by FY29. These factors, combined with the company’s strong market performance and future growth potential, underpin Wood’s Buy rating and the price target of $325.
In another report released today, Jefferies also maintained a Buy rating on the stock with a $270.00 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.