Mizuho Reiterates Outperform Rating on Oracle
Mizuho analyst Siti Panigrahi reiterated an Outperform rating and $320.00 price target on Oracle (NYSE: ORCL).
“Oracle delivered a strong FQ4, with IaaS accelerating to 90%+ Y/Y as the Abilene supercluster and new capacity came online on schedule.
More importantly, the quarter addressed the two debates weighing on shares.
Oracle disclosed FY27 gross CapEx of $90-95B, netting to ~$70B cash outlays, and confirmed incremental financing needs of $20B (after $50B discussed in FQ3), with total well below the $100B Street estimates management dismissed at FQ2.
With 1GW of capacity expected online in FQ1 alone, matching all of FY26, we view the FY27 revenue guide as a conservative starting point.
While management confirmed FY27 and FY28 as the peak CapEx years, the BYOC/prepayment model should help get Oracle to a point where it self-funds its growth and the financing overhang fades and investor focus shifts to FCF inflection.
With shares down 10% post-FQ4, we view this as a buying opportunity. Reiterate Outperform rating, $320 PT.”
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