Piper Sandler Reiterates Overweight on Oracle, $225 PT
Piper Sandler analyst Billy Fitzsimmons reiterated an Overweight rating and $225.00 price target on Oracle (NYSE: ORCL).
“ORCL has remained a controversial name in our coverage as it is a massive beneficiary of generative AI (across IaaS and SaaS) but continues to generate concern around the capital required to fund its AI infra build-out, monetization of AI on the revenue line, customer concentration, and margins.
In this report, we take a closer look at what Oracle’s capex spend could mean for the capacity it brings online and how that could translate into OCI revenue.
Our analysis and attached deck show that Oracle could bring on ~$2.2B of OCI revenue in FY27 that is not currently contemplated in our estimates, based on ~2,400 MW of capacity that could come online this fiscal year.
ORCL has pulled back post-F4Q, but we are constructive given our OCI analysis, accelerating rev growth, the new CFO potentially being a more prudent guider, and reasonable expectations for the apps business in FY27.”
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