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Investing.com - TD Cowen has raised its price target on Oracle (NYSE:ORCL) to $250 from $225 while maintaining a Buy rating on the stock, following the company’s announcement of a significant new deal. The stock, currently trading at $218.63 and near its 52-week high of $228.22, has delivered an impressive 56.57% return over the past year. According to InvestingPro analysis, Oracle appears to be trading above its Fair Value.
Oracle disclosed in an 8-K filing that it has signed a new agreement expected to contribute more than $30 billion in revenue in fiscal year 2028, according to TD Cowen analyst Derrick Wood.
The deal represents the largest in Oracle’s history and could potentially increase fiscal 2028 revenue growth estimates from approximately 17% to over 30%, based on TD Cowen’s initial assumptions.
TD Cowen noted that details about the agreement remain limited, making it difficult to provide more specific analysis about the deal’s structure or the customer involved.
The research firm also mentioned that TikTok reportedly finding a U.S. buyer represents a positive development for Oracle, though no further details were provided about how this might impact the company’s business.
In other recent news, Oracle Corp . has reported a robust start to its fiscal year 2026, with significant growth in its MultiCloud database revenue exceeding 100%. The company has signed several large cloud services agreements, notably one expected to generate more than $30 billion in annual revenue starting in fiscal year 2028. This development aligns with Oracle’s ambitious long-term revenue targets, which include a projected $104 billion in revenue by fiscal 2029. Barclays (LON:BARC) has reiterated its Overweight rating on Oracle, maintaining a price target of $221.00, citing these strong cloud agreements. Meanwhile, Stifel upgraded Oracle’s stock from Hold to Buy, raising its price target to $250.00, based on Oracle’s increased capital expenditure and growth in its cloud infrastructure. Guggenheim also raised its price target to $250.00, maintaining a Buy rating, and highlighted Oracle’s focus on operating income growth. These developments come amid revived discussions about Oracle’s involvement in a consortium, including Blackstone (NYSE:BX) and Andreessen Horowitz, to potentially acquire TikTok’s U.S. operations. The consortium had previously attempted to purchase TikTok but faced hurdles due to U.S.-China trade tensions.
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