Jefferies Reiterates Buy Rating on Oracle (January)

Jefferies analyst Brent Thill reiterated a Buy rating and $400.00 price target on Oracle (NYSE: ORCL).

“ORCL is a top pick despite ongoing debate around its growing AI-related debt and ability to fund aggressive expansion.

The company’s strategy hinges on executing a rapid data center buildout to meet surging demand for AI compute and converting its >$523B backlog into revenue on schedule.

Success here would unlock significant long-term gains in cloud and AI infra, positioning ORCL as a critical enabler of AI workloads in an increasingly hybrid and multi-cloud world.

Investor debate centers on timing and whether ORCL can bring capacity online fast enough to capture booked demand and maintain margin discipline.

Risk/reward is compelling after a significant pullback, and we see far more upside than downside at 16x EV/CY27 EBIT. $400 PT = 19x FY30E EPS of $21.”

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