Barclays Reiterates Overweight Rating on Oracle

Barclays analyst Raimo Lenschow reiterated an Overweight rating and $240.00 price target on Oracle (NYSE: ORCL).

“Q4 should see another AI-driven acceleration that helps reinforce the LT growth story.

However, it does seem AI sentiment is at a ST crossroad with some examples of DC delays (industry-wide, not ORCL specific) and inflation, which creates questions around CapEx & guidance for ORCL and its new CFO.

We Continue to Like the LT ORCL Growth Story and Reiterate our OW Rating: We maintain our price target of $240 based on ~25x our CY27E adj.

EPS estimate of $9.46.

We continue to see a compelling risk/reward for Oracle shares at current levels when considering expectations for ORCL to soon be at 30%+ total revenue growth and continue to view Oracle’s full stack (IaaS/ PaaS/SaaS) offering, enterprise data gravity and cloud database migration story as key differentiators supporting its long-term value proposition.

We maintain our Overweight rating.”

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