BMO Capital raises Oracle stock price target to $355 on FA event catalyst

Investing.com - BMO Capital raised its price target on Oracle (NYSE:ORCL) to $355.00 from $345.00 on Monday, while maintaining an Outperform rating on the stock. The tech giant, currently trading at $292.96 with a market cap of $835 billion, has delivered an impressive 77.5% return year-to-date. According to InvestingPro data, the stock appears overvalued relative to its Fair Value.

The firm cited Oracle’s upcoming FA event next week as a potential positive catalyst for the company’s shares, suggesting the event could include more detailed information on Oracle’s longer-term targets. With 20 analysts recently revising their earnings estimates upward and an overall Financial Health score of "GOOD" from InvestingPro, Oracle maintains a strong market position.

BMO Capital’s research note included an in-depth analysis of Oracle’s capital expenditure requirements needed to support the company’s longer-term top-line growth rates.

Despite raising the price target by $10, BMO Capital made no adjustments to its financial model for Oracle at this time.

The firm reiterated its Outperform rating on Oracle stock, indicating continued confidence in the company’s growth prospects.

In other recent news, Oracle has been in the spotlight with several key developments. The company reported a significant hacking incident, as disclosed by Google, where dozens of companies were affected by a campaign targeting Oracle’s business products, resulting in the theft of substantial customer data. On the financial front, Oracle’s stock has seen some notable analyst activity. Citi raised its price target for Oracle to $415, maintaining a Buy rating, citing the company’s potential for long-term AI growth despite recent stock pullbacks. Meanwhile, Bernstein SocGen reiterated an Outperform rating with a price target of $364, highlighting Oracle’s ongoing business model transition and growth in Oracle Cloud Infrastructure. TD Cowen also reaffirmed its Buy rating and $375 price target, labeling Oracle as a "Top Pick" in anticipation of its upcoming AI World event. Additionally, Oracle launched its Health Connection Hub, a new platform designed to streamline data sharing for U.S. healthcare providers, reportedly cutting processing times for certain claims by half. These developments reflect Oracle’s dynamic presence in both technological and financial arenas.

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