Piper Sandler Raises Oracle Price Target to $225

Piper Sandler analyst Billy Fitzsimmons raised the price target on Oracle (NYSE: ORCL) to $225.00 (from $210.00) while maintaining an Overweight rating.

“ORCL capped off its fiscal year by reporting a slight rev beat and an RPO balance of $638B (+363% y/y), up a sizable $85.4B q/q. FY27 rev guidance was left unchanged at $90B.

However, mgmt guided capex to $90B-$95B (consensus: $61.2B), though the net cash outlay will be smaller given an expected $20-$25B of customer prepayments.

ORCL will raise an additional $40B in FY27 between debt/equity to bridge the gap (inclusive of $20B remaining on existing equity issuance plan).

We believe ORCL will remain debated, but we are constructive on ORCL’s AI-driven consumption growth, believe the FY27 rev guide is reasonable, and walked away from the callback with increased confidence in mgmt’s ability to protect OCI mgns against rising component costs.

Raising PT to $225. Maintain OW.”

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