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Guggenheim raised its price target on Oracle (NYSE:ORCL) to $250.00 from $220.00 on Wednesday, while maintaining a Buy rating on the stock. The new target comes as Oracle trades near its 52-week high of $216.60, with the stock currently commanding a P/E ratio of 46.64. According to InvestingPro analysis, Oracle appears to be trading above its Fair Value.
The price target increase follows virtual investor meetings with Oracle’s SVP of Investor Relations on June 16. The company’s stock has shown remarkable momentum, posting an 18.03% return in the past week alone. Guggenheim highlighted Oracle’s shift to focus on operating income growth rather than margin percentages, along with discussions about RPO growth and the balance of IaaS/SaaS needed to achieve fiscal year 2026 guidance of 40% cloud services growth.
The research firm believes Oracle is "on the precipice of a narrative shift that has been decades of technology innovation in the making," according to its investor note. With an overall Financial Health score of "GOOD" on InvestingPro, which offers 20+ additional exclusive insights about Oracle, Guggenheim expects Oracle’s revenues to "accelerate in a big way" in fiscal years 2026 and 2027, with operating income and EPS following suit.
Guggenheim continues to view Oracle as its "Best Idea" and suggests that the company’s fiscal year 2029 target of $104 billion will "prove to be far too low." With current revenues at $57.4 billion and growing at 8.38% annually, the firm’s analysis draws parallels to Oracle’s performance in the early 2000s when products like RAC yielded "material stock appreciation for a decade."
The price target adjustment comes less than a week after Guggenheim’s June 12 research note titled "ORCL F4Q25 Recap: Seatbelts On," which initially outlined the firm’s bullish outlook on Oracle’s growth trajectory.
In other recent news, Oracle’s fiscal fourth-quarter results exceeded expectations, with better-than-expected revenue and earnings per share. This performance has led BNP Paribas (OTC:BNPQY) Exane to raise its price target for Oracle to $226, maintaining an Outperform rating. Jefferies also adjusted its price target upward to $220, citing Oracle’s robust revenue performance obligations growth and projected acceleration in cloud revenue. UBS followed suit, increasing its price target to $225, highlighting Oracle’s significant backlog growth projected to reach over $275 billion by fiscal year 2026.
Additionally, Oracle announced a partnership with xAI to deliver Grok models through Oracle Cloud Infrastructure’s Generative AI service, enhancing AI capabilities for enterprise applications. Oracle will also deploy AMD (NASDAQ:AMD) Instinct MI355X GPUs in its cloud infrastructure, offering enhanced AI computing resources with improved price-performance. These developments reflect Oracle’s strategic focus on expanding its AI and cloud infrastructure offerings, positioning the company for future growth.
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