What the analyst said

Melius analyst Ben Reitzes reiterated a Buy rating and $170 price target on Oracle (NYSE: ORCL).

“Bottom Line: Oracle’s Investor Day provided more clarity on the path toward achieving positive free cash flow, funding its AI infrastructure buildout.

FY27 and FY28 represent the peak capex years before free cash flow is forecasted to turn positive in 2H FY28 – about a year earlier than we expected.

Management still expects to add ~7GW of incremental capacity, bringing total capacity to ~10GW by the end of FY28.

Although there’s a lot of execution ahead, we see OCI benefiting from business picking up at OpenAI, expanded offerings (Google’s TPU, Cerebras and Nvidia’s Vera Rubin) and improved capital efficiency.

We maintain our price target of $170, or 10x our FY29 EPS of $16.76 (~3.5x on an EV/sales basis, in-line with the hyperscaler average excluding MSFT).”

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Where the price stands

ORCL trades at $145. The 21 analysts who set a target in the last 3 months range from $155 to $400, with a median of $240. This $170 target is 29% below the median.

12-month window: day 0 of 365, closes on October 29, 2027.

Track record

This callOpen: a 12-month target, scored on October 29, 2027, a year after the note.

Firm track recordMelius Research: 75% of its 8 targets at least a year old were reached within 12 months. Accuracy ranking →

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Other analysts on Oracle

GuggenheimBuy Kept rating and price target Oct 29 $400maintained OppenheimerBuy Kept rating and price target Oct 29 $275maintained BairdBuy Kept rating and price target Oct 29 $215maintained Citizens JMPBuy Kept rating and price target Oct 29 $285maintained MizuhoBuy Kept rating and price target Oct 27 $320maintained
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Price Target is an archive of Wall Street analyst research, published for informational purposes only. Nothing on this site is investment advice, a recommendation, or an offer to buy or sell any security. Analyst ratings and price targets are the opinions of the issuing firms, not of Price Target. Always do your own research or consult a licensed financial adviser.