Bernstein SocGen Group Raises Oracle Price Target to $325

Bernstein SocGen Group analyst Mark L.

Moerdler raised the price target on Oracle (NYSE: ORCL) to $325.00 (from $319.00) while maintaining an Outperform rating.

“Oracle delivered another quarter showing that they are executing well towards their FY30 targets with no major hiccups or obscured data points.

However, the stock swung back and forth post Q4 earnings and ended ~10% down.

While Cloud revenue slightly missed (OCI beats and SaaS slightly below), we believe the sticker shock was the CAPEX guide and the additional capital raise in FY27, which will not convert the skeptics and those on the fence into believers, just yet.

However, these numbers have already been baked into our long term models with the $20-25B of the $90-95B FY27 Capex guide being funded by customer prepayments and payment management with suppliers.

While there is an additional $20B capital raise (Management has not specified debt or equity), which we expected in FY28, in CY27, management, based on the current revenue ramp, expect FY28 to be the peak Capex year.

We expect further funding needs to be minimal to none after this raise.

In fact, Oracle is not only executing well but also communicating better, with more details, clarity and increased confidence.

In addition to clarity around CAPEX and funding plans; management has assured that they could pass along rising component costs in their long duration contracts; and explained their capacity ramping schedule in 2027 and their OCI AI gross margin trajectory (trough in FY27 and then improving).

We believe this clarity, openness in disclosure as well as continued execution will increase investor confidence and help investors more easily model the value being created especially by the AI datacenter build out.”

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.