Argus upgrades Oracle to Buy amid growing Cloud revenue

As previously reported, Argus upgraded Oracle to Buy from Hold with a $145 price target after its Q3 earnings beat. The quarter marked the first time when rapidly growing cloud revenue crossed over to become a higher proportion of revenue than the company’s legacy license support revenue, the analyst tells investors in a research note. Oracle has the “high class issue” of demand outstripping its ability to service that demand, and as the company continues to invest in building out its global data centers to meet that demand, the management has reflected about the upcoming revenue acceleration into FY25, the firm added.