Cantor Fitzgerald maintains Oracle stock at Overweight with $175 target

Published 09/06/2025, 13:14
Cantor Fitzgerald maintains Oracle stock at Overweight with $175 target

Monday, shares of Oracle Corporation (NYSE:ORCL) maintained their Overweight rating by Cantor Fitzgerald, with a price target of $175.00. The firm’s analyst, Thomas Blakey, highlighted Oracle’s continued success in migrating workloads to its Oracle Cloud Infrastructure (OCI), attributing this to the company’s leading position in AI infrastructure within the market. According to InvestingPro data, Oracle’s stock has delivered an impressive 39.74% return over the past year, though current valuation metrics suggest the stock is trading above its Fair Value.

Blakey noted that Oracle, alongside Microsoft (NASDAQ:MSFT), appears to be gaining market share, propelled by its AI-driven infrastructure, which includes specialized hardware, Remote Direct Memory Access (RDMA), extensive GPU access, and built-in security features. He also mentioned that Oracle’s overall business saw an uptick in the fourth fiscal quarter of 2025, recovering from a slower third quarter that was affected by macroeconomic factors. With a market capitalization of $488 billion and a solid financial health score of "GOOD" from InvestingPro, Oracle continues to demonstrate its strength in the software industry. Subscribers can access 12+ additional ProTips and comprehensive valuation metrics on the platform.

The analyst expressed that Oracle’s Stargate project, which has not yet been announced as operational, is not expected to contribute to the fourth fiscal quarter of 2025 results and might also be absent from fiscal year 2026 figures, based on the upcoming weekly call. Investors and analysts are anticipated to closely monitor the margin headwinds from AI investments and the Stargate deals, as well as the development of the Abilene data center, as Oracle strives to expand its market share.

Blakey’s commentary underscores the significance of Oracle’s strategic moves in the AI space and its potential impact on future earnings and market performance. Oracle’s efforts in enhancing its cloud and AI offerings are set to remain a focal point for stakeholders tracking the company’s trajectory in the competitive tech landscape.

In other recent news, Oracle has made significant advancements in various areas. BMO Capital has increased its price target for Oracle to $200, citing expectations of double-digit growth in operating income by fiscal year 2027, despite anticipated lower operating margins due to depreciation. Morgan Stanley (NYSE:MS) also raised its price target to $175, driven by confidence in Oracle’s strong bookings and the potential benefits of a weaker dollar. BNP Paribas (OTC:BNPQY) Exane lifted its target to $190, optimistic about Oracle’s AI prospects and the potential impact of the Stargate project. However, concerns remain about Oracle’s ability to bring new capacity online, which is crucial for revenue growth.

TD Cowen reaffirmed its Buy rating with a $210 price target, expressing optimism about Oracle’s upcoming fourth-quarter report and the strong demand for Oracle Cloud Infrastructure. Additionally, Oracle has introduced AI-powered anomaly detection and in-memory processing to its Utilities Customer Platform, enhancing meter data management and utility operations. These enhancements aim to streamline workflows and reduce operational expenses, offering improvements at no extra charge to customers. The integration of AI is expected to lead to quicker resolution times and enhanced customer satisfaction.

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