Rating
Buy
Price target
$240
Previous
$275
Implied upside
+19%

Wedbush analyst Daniel Ives lowered the price target on Oracle (NYSE: ORCL) to $240.00 (from $275.00) while maintaining an Outperform rating.

“Oracle (ORCL) reported its FY4Q26 (May) results that featured beats on the top and bottom lines and provided solid FY27 guidance while the all-important RPO number came well above expectations as growing demand for cloud, AI training, and inferencing continues to ramp.

The company announced that it expects to raise ~$40 billion through a combination of debt and equity financing in FY27 including its $20 billion at the-market equity issuance while it does not expect to issue more debt in CY26 as the need to build out AI infrastructure quickly at scale is a top priority.

We believe that ORCL is taking the right steps to address the massive AI opportunity ahead as its record backlog provides the revenue visibility to underwrite this aggressive capacity buildout.

The prepaid and customer-supplied hardware on its large AI contracts act as cushions, in our view, reducing the capital it must raise and keeping the FY27 financing need contained relative to the size of the opportunity ahead.

We maintain our OUTPERFORM rating while lowering our PT to $240 from $275 as adding more debt to the capital structure is not a move the Street wants to see and continues to create this “tug of war” on the name between RPO and the necessary capital raises/AI datacenter buildout in the near-term.”

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