Mizuho Reiterates Outperform Rating on Oracle (June 3)
Mizuho analyst Siti Panigrahi reiterated an Outperform rating and $320.00 price target on Oracle (NYSE: ORCL).
“We expect solid FQ4 results (on 6/10) and believe the setup is favorable as investor concerns have shifted from demand to execution.
FQ3 validated accelerating OCI conversion of $553B RPO, and FY27 revenue visibility. Beyond FQ4 revenue/EPS beat, FQ4 is a major catalyst.
Oracle has the opportunity to reframe debates around revenue acceleration (34% in FY27 from 17% in FY26), DC execution, BYOC/prepay economics, EPS leverage from restructuring, and funding/FCF visibility.
Importantly, FQ4 should materially reduce the primary overhang on the stock.
Initial FY27 CapEx guide should give investors a framework to triangulate forward CapEx against incremental AI revenue and confidence that total financing needs remain below $100B.
LT, we remain materially ahead of consensus on Oracle’s margin and FCF trajectory.
FCF inflects to positive $4B in our FY29E and $36B in FY30E, marking the point when Oracle self-funds growth and financing concerns weighing on sentiment should fade. Reiterate Outperform.”
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