Rating
Buy
Price target
$210
Previous
$230
Implied upside
+42%

Freedom Broker analyst Egor Tolmachev lowered the price target on Oracle (NYSE: ORCL) to $210.00 (from $230.00) while maintaining a Buy rating.

“Oracle’s FQ4’26 capped a year of deliberate transformation — from a steady enterprise-software incumbent into one of the most aggressive builders of AI compute in the market.

The quarter itself was strong, with cloud reaccelerating and applications momentum intact, yet the print has become almost secondary to two larger facts: a contracted backlog that now stretches years into the future, and a capital program large enough to reshape the balance sheet.

The investment question has shifted with it — no longer whether demand exists, but whether Oracle can fund the build, convert an extraordinary backlog into recognized revenue and cash, and defend its credit standing along the way.

Management’s answer leans on prepaid and customer-funded structures that lower the external capital required, and on a long-term framework it reaffirmed with unusual conviction.

In the wake of the 10-K, the shares suffered their steepest weekly fall since the dot-com era, due to rising leverage and another market reassessment of AI trend sustainability.

We view execution as necessary but not yet sufficient to re-rate the stock, which we expect to trade on conversion and funding proof points.

We have lowered our price target for ORCL to $210 while reiterating our Buy rating.”

Disclaimer
The price target and rating on this page are the opinion of the issuing research firm and its analyst, not of Price Target. This page is published for informational purposes only and is not investment advice, a recommendation, or an offer to buy or sell any security. Past performance does not guarantee future results. Consider your own circumstances and consult a licensed financial adviser before making investment decisions.

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.

Share

Share on
Price Target is an archive of Wall Street analyst research, published for informational purposes only. Nothing on this site is investment advice, a recommendation, or an offer to buy or sell any security. Analyst ratings and price targets are the opinions of the issuing firms, not of Price Target. Always do your own research or consult a licensed financial adviser.