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Jefferies raised its price target on Oracle (NYSE:ORCL) to $220 from $200 on Thursday, while maintaining a Buy rating on the stock. Currently trading at a P/E ratio of 40.41 and commanding a market capitalization of $494.61 billion, Oracle continues to demonstrate strong momentum. The research firm cited Oracle’s strong revenue performance obligations (RPO) growth of 41% and the company’s fiscal year 2026 guidance of over 100% growth, not including its Stargate initiative. According to InvestingPro, Oracle’s stock is currently trading above its Fair Value, with 12 more exclusive insights available to subscribers.
The firm highlighted Oracle’s cloud revenue growth, which is expected to accelerate in fiscal year 2026 to 40%, compared to 24% in fiscal year 2025. With current annual revenue of $55.78 billion and a solid revenue growth rate of 6.23%, Oracle has established a strong foundation for expansion. Infrastructure as a service (IaaS) growth is projected to reach 70%, up from 51% in the previous fiscal year, which Jefferies believes demonstrates a widening gap between supply and demand.
Oracle’s fourth-quarter results were described as mixed by Jefferies, with software as a service (SaaS) performance exceeding expectations while IaaS results fell short of projections. Despite the mixed quarterly performance, the firm expressed confidence in Oracle’s future prospects.
Jefferies maintained its Buy rating on Oracle stock based on the momentum in revenue performance obligations and the potential for revenue conversion. The firm believes these factors can support upside from 32 times calendar year 2026 earnings per share.
The price target increase represents a 10% boost from Jefferies’ previous target of $200, reflecting the firm’s optimistic outlook on Oracle’s growth trajectory in cloud services and artificial intelligence infrastructure buildout. InvestingPro analysis shows Oracle maintains a "GOOD" Financial Health Score of 2.71, supporting its robust market position. For deeper insights into Oracle’s valuation and growth prospects, including exclusive financial metrics and expert analysis, check out the comprehensive Pro Research Report, available to InvestingPro subscribers.
In other recent news, Oracle has reported strong financial results for its fourth quarter of fiscal year 2025, exceeding analyst expectations. The company posted non-GAAP earnings per share of $1.70, surpassing the consensus estimate of $1.64, while revenue reached $15.90 billion, above the projected $15.59 billion. This reflects an 11% year-over-year revenue increase, driven by robust growth in its cloud services. Notably, Oracle’s Infrastructure as a Service business grew by 52% year-over-year, and Software (ETR:SOWGn) as a Service saw a 13% increase. Following these results, several analyst firms have adjusted their price targets for Oracle. Citizens JMP raised its target to $240, maintaining a Market Outperform rating, while RBC Capital increased its target to $195 but kept a Sector Perform rating. Piper Sandler also raised its price target to $190, citing Oracle’s strong backlog performance, though it maintained a Neutral rating due to potential capital intensity risks. Meanwhile, Mizuho (NYSE:MFG) reiterated an Outperform rating, highlighting Oracle’s double-digit organic revenue growth milestone. These developments underscore Oracle’s continued momentum in the cloud sector and its strategic focus on expanding its cloud offerings.
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