Oracle upgraded to Outperform from Market Perform at BMO Capital

BMO Capital upgraded Oracle (ORCL) to Outperform from Market Perform with a price target of $235, up from $200. The firm cites the company’s “solid results and compelling guidance” for the upgrade. BMO now has growing confidence that Oracle can grow operating income dollars in fiscal 2026, and that price-to-earnings is a more appropriate valuation framework during accelerated capital expending spending periods. While Oracle’s fiscal 2026 remaining performance obligation guidance “seems aggressive,” even if the company is close to guidance, the shares will move higher, the analyst tells investors in a research note. BMO believes the company’s software growth, including database, can improve, which will help mitigate margin/mix impact over time.