Oppenheimer Maintains Outperform on Oracle, $275 Price Target

Oppenheimer analyst Brian Schwartz reiterated an Outperform rating and $275 price target on Oracle (NYSE: ORCL).

“Reiterating Outperform rating on Oracle after yesterday’s investor meeting provided better-than-investor fears on the remaining capital needs to fund Capex, the timing for sustaining positive FCF, the economics of the different reporting segments, a faster cadence of AI innovations and live agents, and accompanied by strong commentary on Oracle’s opportunity in the AI era.

Specifically, management plans to raise $20B and then self-fund Capex starting in 2HFY28. This guidance somewhat dents the credit risk concerns overhanging the stock.

While uncertainty still remains on whether Oracle can raise compute pricing and replicate its efficiency learnings from building large data centers for future data centers, the meeting bolstered our confidence in Oracle’s ability to remain one of the fastest top- and bottom-line growers in large cap technology.”

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