Citizens JMP reiterates Market Outperform rating on Oracle stock

Investing.com - Citizens JMP analyst Patrick Walravens reiterated a Market Outperform rating and $315.00 price target on Oracle (NYSE:ORCL), the $669 billion market cap software giant that currently trades near its 52-week high of $251.60.

The reiteration comes after Oracle stock has increased 43% year to date, significantly outperforming both the S&P 500 and Russell 3000, which have each risen by 7%.

The analyst noted several recent developments related to Oracle’s Stargate project and OpenAI, including OpenAI’s announcement of an agreement to develop 4.5 gigawatts of additional Stargate data center capacity in the United States.

The Wall Street Journal reported on July 21 that SoftBank (TYO:9984) has set a more modest goal of building a small data center by the end of this year, likely in Ohio.

Elon Musk posted on X that SoftBank does not have the capital for the Stargate Project, while his company xAI is in the process of raising $12 billion to support its own AI infrastructure expansion.

In other recent news, Oracle has entered into a partnership with OpenAI to develop an additional 4.5 gigawatts of Stargate data center capacity in the United States. This expansion will increase OpenAI’s total AI data center capacity under development to over 5 gigawatts. Analysts have responded positively to Oracle’s developments, with Citizens JMP raising its price target for the company to $315 from $240, maintaining a Market Outperform rating. UBS also increased its price target to $280 from $250, citing expectations of significant AI-driven growth and potential collaboration with OpenAI. Cantor Fitzgerald raised its price target to $271 from $216, noting enhanced Oracle Cloud Infrastructure estimates that surpass consensus projections for future fiscal years. Evercore ISI adjusted its price target to $270 from $215, pointing to Oracle’s strong fiscal year 2026 outlook and a substantial $30 billion annual contract. These developments reflect a broad consensus among analysts about Oracle’s potential growth in the AI and cloud sectors.

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