Oracle stock price target raised to $269 from $225 at Bernstein
Investing.com
Published Jul 08, 2025 08:15AM ET
Investing.com - Bernstein SocGen Group raised its price target on Oracle (NYSE:ORCL) to $269.00 from $225.00 while maintaining an Outperform rating. According to InvestingPro data, Oracle is currently trading above its Fair Value, with the stock near its 52-week high of $237.99.
The firm cited Oracle's growth acceleration as a key factor in the decision, particularly highlighting the company's recent announcement of a multi-year contract expected to generate over $30 billion in annual revenue starting in fiscal year 2028. The company has already demonstrated solid growth, with revenue increasing 8.38% over the last twelve months to $57.4 billion.
Bernstein described Oracle as a "safe harbor stock amid economic uncertainty" with a growth story that is "shining through," noting that Oracle's accelerating growth is "unusual and valuable" at a time when most SaaS growth names continue to decelerate. InvestingPro analysis reveals 12 analysts have revised their earnings upward for the upcoming period, supporting this positive outlook. Get access to 20+ additional exclusive ProTips and comprehensive analysis with InvestingPro.
The price target increase reflects Bernstein's raised estimates for Oracle's fiscal year 2027 and an increase in the target price-to-earnings ratio from 26.5x to 31x based on the company's growth acceleration.
Bernstein's analysis breaks down Oracle's revenue streams to help investors understand which products are shrinking, flattish, or growing, with particular attention to Oracle Cloud Infrastructure (OCI) AI revenue, cloud database, and strategic back office opportunities.
In other recent news, Oracle has made significant strides with its cloud services, announcing a multi-year contract expected to contribute more than $30 billion in annual revenue starting in fiscal year 2028. This deal has led to increased market discussions about Oracle's competitive positioning. Analysts from TD Cowen raised their price target on Oracle to $275, citing a potential large deal with OpenAI through Stargate, which could drive Oracle's total revenue growth to exceed 50% by 2028. Meanwhile, Citizens JMP maintained a $240 price target following Oracle's recent cloud service agreements, emphasizing the company's potential to expand its data center power capacity.
S&P Global Ratings revised its outlook on Oracle to negative from stable, due to the company's rapidly expanding cloud infrastructure business impacting cash flow. Despite this, Oracle reported strong operating results in fiscal 2025, with revenues growing 8.4% to $57.4 billion and cloud services increasing by 24% to $24.5 billion. S&P forecasts fiscal 2026 revenues to grow 16% to approximately $67 billion. Oracle's partnership with OpenAI, part of the Stargate initiative, involves renting 4.5 gigawatts of data center power, highlighting the company's efforts to meet growing AI demands. These developments underscore Oracle's significant investments and potential revenue growth, despite the challenges in cash flow management.
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Written By: Investing.com
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