Oracle price target raised to $220 from $170 at DA Davidson on ByteDance deal

Investing.com - DA Davidson raised its price target on Oracle (NYSE:ORCL) to $220 from $170 on Wednesday, while maintaining a Neutral rating on the stock. The new target aligns with broader analyst expectations, with targets ranging from $170 to $250. According to InvestingPro data, Oracle’s stock has delivered an impressive 54.5% return over the past year, currently trading near its 52-week high of $228.22.

The price target increase follows Oracle’s 8-K filing on Monday, which disclosed that the company had signed a cloud service agreement worth more than $30 billion starting in fiscal year 2028.

DA Davidson analyst Gil Luria indicated that the firm believes the agreement is between Oracle and ByteDance, based on information that has emerged over the past few days.

Despite the significant cloud service deal, DA Davidson maintained its Neutral rating on Oracle stock.

The $30 billion cloud service agreement represents a major contract for Oracle as it continues to expand its cloud infrastructure business.

In other recent news, Oracle has reported significant developments that have caught the attention of investors and analysts alike. The company disclosed in a Form 8-K filing that it has signed a major new agreement expected to contribute more than $30 billion in annual revenue starting in fiscal year 2028. This deal is considered the largest in Oracle’s history and is projected to significantly boost its fiscal 2028 revenue growth estimates. Analysts from TD Cowen have raised Oracle’s price target to $250, citing the importance of this agreement, while Barclays (LON:BARC) reiterated its Overweight rating, highlighting the deal’s potential to close the gap between Oracle’s fiscal 2026 and fiscal 2029 revenue targets.

Additionally, Oracle’s multicloud database revenue continues to grow at over 100%, with strong demand for its Oracle Cloud Infrastructure. William Blair has reiterated an Outperform rating on Oracle, emphasizing the company’s strong position in the database market and its unique multicloud deployment options. The analyst firm noted Oracle’s AI-focused enhancements as a key advantage. Meanwhile, TikTok’s U.S. sale talks have reportedly been revived, with Oracle as part of a consortium interested in acquiring the app, although the outcome remains uncertain due to regulatory considerations.

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