Bernstein Reaffirms Outperform on Oracle, $325 Price Target

Bernstein SocGen Group analyst Mark Moerdler reiterated an Outperform rating and $325 price target on Oracle (NYSE: ORCL)

“Oracle will be hosting its FAM on Wednesday (Oct-19) at its Oracle AI World conference.

With the stock behaving like a roller-coaster over the past year (down ~50% Y/Y), this is an important event for the company and investors.

Including, we expect upwards revision to financial target as RPO growth has been strong over the last four quarters, but we think investors are more focused on clarity around AI compute business model.

The key investor concern surrounding Oracle broadly fall in the buckets of execution and value generation.

Based on multitudes of client conversations (Oracle is our # 1 in bound), we identify the following four as the key investor concerns: 1) Profitability and ROI; 2) Capital raise and cost of capital; 3) Durability of AI demand and 4) Execution risk.

While not all oft these can be answered at the FAM we believe that management is going to work hard to answer many of these concerns and generally give more color and detail.”

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