Oracle stock price target raised to $270 from $215 at Evercore ISI

Investing.com

Published Jul 14, 2025 08:55AM ET

Oracle stock price target raised to $270 from $215 at Evercore ISI

Investing.com - Evercore ISI raised its price target on Oracle (NYSE:ORCL) to $270.00 from $215.00 on Monday, while maintaining an Outperform rating on the stock. The tech giant, currently valued at $647.6 billion, has seen its shares surge 60.93% over the past year, trading near its 52-week high of $241.44. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.

The firm cited Oracle's upbeat fiscal year 2026 outlook and a recent filing highlighting a $30 billion annual contract that solidifies Oracle's position as the "fourth" global hyperscaler. With current annual revenue of $57.4 billion and a solid financial health score of "GOOD" from InvestingPro , Oracle continues to demonstrate strong market positioning.

Evercore ISI broke down Oracle Cloud Infrastructure (OCI) into three segments in its analysis: core OCI, AI OCI, and Database as a Service (DBaaS). The firm models core OCI growing at a 49% CAGR through FY29, DBaaS at 37%, and AI services at 104%, with FY29 gross margins of approximately 65%, 75%, and 30%, respectively.

Despite the mix shift putting downward pressure on gross and operating margins at a company level, Evercore ISI forecasts operating income growing at a 13% CAGR through FY29, with annualized EPS growth of 11% in its base case scenario.

The firm noted that if OCI skews more toward AI, which seems increasingly likely given the recent filing, it would expect a bigger drag on margins and free cash flow but higher revenue and EPS than its base case.

In other recent news, Oracle Corporation has been in the spotlight due to several significant developments. The company has reached a settlement agreement with Rimini Street (NASDAQ:RMNI), resolving a long-standing legal battle. Under the terms of the settlement, Oracle will return approximately $37.8 million to Rimini Street, which had previously paid $58.7 million in legal fees. In the realm of analyst activity, Piper Sandler upgraded Oracle's stock to Overweight, citing strong AI momentum as a key factor and raising the price target to $270.00. Similarly, Bernstein increased Oracle's price target to $269.00, highlighting a multi-year contract expected to generate over $30 billion in annual revenue by fiscal year 2028. Meanwhile, TD Cowen raised its price target for Oracle to $275.00, maintaining a Buy rating, and pointed to a potential large deal with OpenAI as a significant growth driver. These analyst upgrades and price target increases reflect optimism about Oracle's future revenue and growth prospects. Oracle's recent announcements and strategic moves have intensified market discussions about its competitive positioning in the tech industry.

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