Mizuho Securities analyst Siti Panigrahi has maintained their bullish stance on ORCL stock, giving a Buy rating today.
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Siti Panigrahi has given his Buy rating due to a combination of factors including Oracle’s strong growth in remaining performance obligations (RPO), which surged by 63% year-over-year to $130 billion. This growth reflects the company’s confidence in accelerating revenue growth projections for the coming years, with expectations of reaching 20% growth by fiscal year 2027. Additionally, Oracle’s strategic initiatives such as the multi-cloud strategy and partnerships with major AI companies like Meta and AMD are contributing to its robust positioning in the market.
Despite some short-term challenges related to data center readiness, Oracle’s cloud infrastructure and application products continue to perform well, driven by unprecedented demand for AI solutions. The company’s expansion plans, including increased capital expenditure to address supply constraints, further support its growth trajectory. The anticipated Stargate project, although not yet signed, is expected to be a significant growth driver, enhancing Oracle’s revenue potential in the medium term.
According to TipRanks, Panigrahi is an analyst with an average return of -1.3% and a 45.14% success rate. Panigrahi covers the Technology sector, focusing on stocks such as Intuit, RingCentral, and Paycom.
In another report released today, Jefferies also maintained a Buy rating on the stock with a $220.00 price target.