Analyst Mark Moerdler from Bernstein reiterated a Buy rating on Oracle and increased the price target to $269.00 from $225.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Mark Moerdler has given his Buy rating due to a combination of factors that highlight Oracle’s strong growth potential and strategic positioning. Oracle’s revenue growth has been on an upward trajectory, largely driven by its Cloud segment, which now constitutes a significant portion of its software revenue. The company’s focus on OCI Gen II, which includes cloud databases and AI, as well as strategic back-office solutions like ERP and HCM, has been pivotal in this growth.
Furthermore, Oracle’s long-term guidance suggests robust financial targets, including substantial revenue and operating margins by FY29. Despite economic uncertainties, Oracle remains a stable investment, with its growth story becoming increasingly compelling. The market’s focus on OCI and AI training revenue often overlooks the potential of Oracle’s cloud database and strategic back-office offerings. Consequently, Moerdler has raised estimates for FY27 and adjusted the target P/E ratio, reinforcing the Outperform rating.
In another report released today, Jefferies also maintained a Buy rating on the stock with a $270.00 price target.