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Investing.com - BNP Paribas Exane raised its price target on Oracle (NYSE:ORCL) to $377.00 from $272.00 on Wednesday, while maintaining an Outperform rating on the stock. The new target sits well above the current stock price of $335.28, with Oracle trading near its 52-week high after delivering a remarkable 63% return over the past six months. According to InvestingPro analysis, the stock appears overvalued at current levels.
The significant price target increase reflects BNP Paribas Exane’s higher outer-year non-GAAP EPS forecasts after incorporating management’s new Oracle Cloud Infrastructure (OCI) revenue targets.
The research firm expects Oracle to achieve substantial fixed cost and operating expense leverage over the coming years, despite rising depreciation costs.
BNP Paribas Exane projects Oracle will deliver more than 20% EPS growth through fiscal year 2030, supporting the higher valuation target.
The firm continues to value Oracle based on a 32.5x FY29 non-GAAP P/E ratio, discounted back to present value.
In other recent news, Oracle has seen significant developments in its financial outlook and strategic initiatives. The company reported a remarkable $317 billion quarter-over-quarter increase in remaining performance obligations, driven by several large AI contracts. This unprecedented growth led TD Cowen to raise its price target for Oracle to $375 while maintaining a Buy rating. Similarly, BMO Capital increased its price target to $345, citing Oracle’s strong bookings and a 359% year-over-year growth in remaining performance obligations. Piper Sandler also raised its price target to $330, emphasizing Oracle’s transformation into a leader in AI infrastructure.
In addition to financial updates, Oracle launched an AI Center of Excellence for Healthcare to assist organizations in implementing AI solutions. This initiative aims to provide healthcare systems with resources and expertise for AI experimentation and implementation. Furthermore, Oracle plans to integrate AI capabilities into its Health Patient Portal by 2026. This integration will allow patients to interact with their medical records using conversational AI, offering explanations and insights into complex medical information. These recent developments highlight Oracle’s strategic focus on AI and healthcare innovation.
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