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Investing.com - KeyBanc has maintained its Overweight rating for Oracle (NYSE:ORCL) with a price target of $350.00, according to a research note released Tuesday. The stock, currently trading at $328.15 and near its 52-week high of $345.72, has delivered an impressive 99.8% return over the past year. According to InvestingPro analysis, Oracle appears to be trading above its Fair Value.
The investment firm analyzed Oracle’s cloud infrastructure business, estimating that the Infrastructure-as-a-Service segment currently operates at a 42.4% non-GAAP gross margin.
KeyBanc noted that GPU-based infrastructure businesses within its large-cap coverage have generally demonstrated lower gross profitability levels, influencing its analysis of Oracle’s operations.
While the firm expects efficiency improvements across all segments of Oracle’s business, it has reduced estimates for future years due to an anticipated mix-shift toward more AI-related revenue.
Despite these adjustments to future projections, KeyBanc maintained its Overweight rating and $350.00 price target for the technology company.
In other recent news, Oracle Corporation has announced the appointment of Clay Magouyrk and Mike Sicilia as co-CEOs, with Safra Catz transitioning to Executive Vice Chair of the Board of Directors. Magouyrk and Sicilia bring extensive experience from their previous roles within Oracle, overseeing cloud infrastructure and vertical applications, respectively. Jefferies has reiterated its Buy rating on Oracle, maintaining a price target of $360, viewing these leadership changes as a positive step for the company.
Additionally, Oracle is part of a consortium aiming to keep TikTok operational in the United States, according to a report by CBS News. This potential deal aligns with analyst commentary from Bernstein, which highlights Oracle’s growing influence in cloud services, particularly noting a recent $317 billion in new RPO commitments. The Bernstein analyst suggests that these developments could position Oracle as the third largest hyperscaler. These updates reflect Oracle’s strategic moves and the positive outlook from analysts like Jefferies and Bernstein.
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