Guggenheim Reiterates Buy Rating on Oracle (February 2)

Guggenheim analyst John DiFucci reiterated a Buy rating and $400.00 price target on Oracle (NYSE: ORCL).

“Oracle is not only saying they’re committed to Investment Grade debt, but they are sending a clear message today to bond investors and the rating agencies that they are.

We expect this to be well-received by the rating agencies and bond investors, who have had an outsized influence on the stock of late.

Today, Oracle announced a plan to raise $45B-$50B of gross proceeds in 2026 to fund expansion of Oracle Cloud Infrastructure (OCI) for key customers including AMD, Meta, Nvidia, OpenAI, TikTok, and xAI.

Although management reaffirmed their commitment to maintaining ORCL’s investment-grade debt rating on the F2Q26 earnings call in December, debt and equity investor concerns around capital intensity have persisted, so this financing framework should add some clarity.

See our note “ORCL: Why ORCL is Our Best Idea Into 2026”, dated January 20th, 2026 where we address these concerns in detail.

We believe investors will appreciate the clarity provided on timing and magnitude of this upcoming debt raise, and it’s also encouraging that Oracle is already calling it investment-grade debt, given they’ve likely been in close communication with the debt rating agencies as of late.

We see this as an opportunity for investors with a longer time horizon, a few years rather than a few weeks or months, to start to build a position.

While we keep calling this a decade stock (because we believe it is), we expect the numbers to be irrefutable in half that time and be obvious long before that.

ORCL remains our Best Idea with a $400 Price Target.”

This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.