Mizuho Reaffirms Outperform on Oracle, $320 PT
Mizuho analyst Siti Panigrahi reiterated an Outperform rating and $320 price target on Oracle (NYSE: ORCL).
“Oracle’s F1Q27 results reinforce the new era, delivering its third consecutive quarter of revenue and EPS upside.
Top-line growth is materially accelerating as Oracle brings meaningful capacity online, in some cases ahead of schedule enabling faster-than-expected IaaS revenue growth.
Meanwhile, management is demonstrating strong OpEx discipline with op. margin up ~35bps Y/Y despite the significant decline in gross margin.
FY27 revenue and EPS guide were raised moderately after just one quarter, demonstrating strong momentum but retaining its balanced approach.
In addition, FY27 gross CapEx was reiterated and management expects net cash CapEx ‘not more than $70B,’ with FY27/FY28 viewed as the peak CapEx years and Oracle approaching self-funding thereafter.
We remain constructive on Oracle’s execution, see opportunity to deliver upside to the revised full-year outlook, and reiterate our Outperform rating, $320 PT.”
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