Oracle price target raised to $94 from $80 at KeyBanc

KeyBanc analyst Michael Turits raised the firm’s price target on Oracle to $94 from $80 and keeps an Overweight rating on the shares ahead of quarterly results. The analyst views Oracle as a defensive investment in a challenging macro and long-term "cloud rerating" story. He sees opportunity for continued mid to high single digit % CC revenue growth led by Oracle’s high growth backoffice SaaS and cloud OCI segments, with continued at least mid-single digit database growth. Plus, Turits expects EBIT margins to expand from 42% 2023 toward Oracle’s 45% 2026 target with Cerner moving from low 20s toward Oracle’s mid 40s standalone margins, and increasing efficiencies in cloud apps and infrastructure largely offsetting the pressure on gross margins from the mix shift to cloud.