Mizuho Reiterates Outperform on Oracle, $320 PT
Mizuho analyst Siti Panigrahi reiterated an Outperform rating and $320 price target on Oracle (NYSE: ORCL).
“We believe ORCL shares, trading at multi-year lows, reflects one of the most attractive risk/reward profiles in our coverage.
Shares trade at 14x CY27 non-GAAP EPS, a discount to every comparable infrastructure peer despite above-peer growth, even as execution strengthens across capacity conversion, RPO quality, and financing visibility.
Management delivered two consecutive strong quarters while providing increasing clarity/disclosure on funding amount, timing, and sources; rising BYOH/prepaid adoption, confirming flat-to-better gross margin with materially higher ROIC; CapEx; and capacity coming online in F1Q27 (1GW) versus all of FY26 (~1.2GW).
We see several catalysts ahead, including continued capacity monetization through FY27 and FY28, a fading financing overhang as the ATM executes, and early Applications reacceleration.
Visibility is also building toward the FY29/FY30 FCF inflection, which we expect to support a rerate well before that point arrives.
We reiterate Outperform, with shares trading at 6x its FY30 non-GAAP EPS target of $21.”
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