SoFi stock falls after announcing $1.5B public offering of common stock
Investing.com - Deutsche Bank has reiterated its Buy rating and $375.00 price target on Oracle (NYSE:ORCL), highlighting the company’s artificial intelligence cloud infrastructure opportunities. According to InvestingPro data, this target sits below the analyst high target of $430, suggesting significant upside potential from the current price of $202.46 for the $577.6B market cap company.
The firm notes that Oracle shares currently trade at 27x consensus CY26 EPS, which reflects upfront costs in scaling the AI business and indicates limited investor appetite for growth beyond what can be demonstrated immediately. InvestingPro data shows Oracle’s current P/E ratio stands at 46.69 with a PEG ratio of 4.1, confirming the premium valuation Deutsche Bank references.
Deutsche Bank acknowledges financial and operational risks but believes these are "much more than offset by the very real opportunity" as OpenAI backlog represents solid return on investment and validates Oracle’s leadership in deploying AI cloud infrastructure at scale.
The bank’s price target is derived from discounted cash flow analysis and implies approximately 38x their CY27 estimated non-GAAP EPS, suggesting significant upside potential from current levels.
Deutsche Bank views the recent pullback in Oracle shares as "an attractive entry point for investors when looking at Oracle’s business in totality," with risk/reward that "skews strongly to the upside."
In other recent news, Oracle is reportedly involved in discussions with a group of banks for a potential $38 billion loan package alongside data center builder Vantage. This funding is intended to support the construction of new facilities for OpenAI, as reported by the Financial Times. Meanwhile, HSBC has maintained its Buy rating on Oracle, with a price target of $382, as the company explores various funding strategies for cloud infrastructure expansion. Deutsche Bank also reiterated its Buy rating, setting a price target of $375, following an analysis of Oracle’s relationship with OpenAI amid industry concerns about AI capacity commitments.
Conversely, DA Davidson lowered its price target for Oracle to $200 from $300, maintaining a Neutral rating due to concerns about Oracle’s reliance on OpenAI. The firm noted that Oracle’s shares have been trading lower since its September earnings report. Additionally, BofA Securities highlighted the "OpenAI dilemma" for major tech companies, emphasizing OpenAI’s dual role as a significant cloud customer and potential competitor. OpenAI’s agreements with Google, Amazon, Microsoft, and Oracle have been noted for their impact on the cloud computing landscape. These developments reflect Oracle’s ongoing strategies and challenges in the evolving tech industry.
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