Oracle price target raised to $300 from $220 at DA Davidson

Investing.com - DA Davidson raised its price target on Oracle (NYSE:ORCL) to $300 from $220 while maintaining a Neutral rating on the stock. The company, with a substantial market capitalization of $678 billion, has seen an impressive 8% return over the past week. According to InvestingPro analysis, Oracle is currently trading above its Fair Value.

The price target increase follows Oracle’s fiscal first quarter 2026 earnings report, which DA Davidson described as "largely in-line" with expectations. The company maintains strong fundamentals with a 70.5% gross profit margin and annual revenue of $57.4 billion.

The firm highlighted continued demand for AI compute on Oracle Cloud Infrastructure as a key factor in its decision to raise the price target.

Oracle reported remaining performance obligations (RPO) of $455 billion in the quarter, representing a 359% increase in constant currency.

Management indicated that RPO is likely to exceed $500 billion over the next few months due to the signing of several additional multi-billion-dollar customers, with expected revenue of $363 billion over the subsequent four years.

In other recent news, Oracle has seen a series of upward revisions in its stock price targets by several financial firms following its latest financial results. The company’s fiscal first quarter reported a remarkable 359% year-over-year growth in Remaining Performance Obligations (RPO), reaching $455 billion. This surge in RPO was driven by major contracts with artificial intelligence companies and large language model vendors. Jefferies noted that Oracle added $317 billion sequentially in RPO, which is nearly five times the company’s expected total revenue for fiscal year 2026. As a result, Evercore ISI raised its price target for Oracle to $340, maintaining an Outperform rating, while Stifel increased its target to $350 with a Buy rating. Jefferies and Cantor Fitzgerald also raised their price targets to $360 and $400, respectively, both maintaining Buy and Overweight ratings. Citizens JMP adjusted its price target to $342, citing Oracle’s record-breaking RPO growth. These developments highlight Oracle’s accelerating cloud infrastructure backlog and its potential for future revenue and earnings per share growth.

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