Oracle price target raised to $325 from $275 at TD Cowen on OpenAI deal

Investing.com - TD Cowen has raised its price target on Oracle (NYSE:ORCL) to $325 from $275 while maintaining a Buy rating on the stock. The stock currently trades at $252.25, near its 52-week high of $260.87, after delivering an impressive 101.5% return over the past year. According to InvestingPro analysis, Oracle appears to be trading above its Fair Value.

The price target increase follows OpenAI’s July 22 blog post indicating that the Stargate project is advancing with an expanded 4.5GW DC partnership with Oracle.

TD Cowen noted that this development increases the probability of "blue sky scenarios" for Oracle, including the firm’s baseline assumption of approximately $150 billion in revenues and earnings per share of about $15 by fiscal year 2029.

The research firm has introduced new estimates for Oracle’s fiscal years 2028 and 2029, reflecting the potential impact of the expanded OpenAI partnership.

TD Cowen’s analysis includes additional checks that should help determine the size and scope of the deal between Oracle and OpenAI.

In other recent news, Oracle has been in the spotlight with several significant developments. BofA Securities raised its price target for Oracle to $295 from $220, maintaining a Neutral rating, citing positive sentiment regarding the AI cycle. Meanwhile, Moody’s revised Oracle’s outlook to negative, reflecting concerns about increased leverage and negative cash flow due to Oracle’s AI infrastructure expansion. Additionally, Oracle announced its support for the White House’s initiative on healthcare data interoperability, pledging to collaborate with federal agencies and industry leaders to enhance the digital health ecosystem. In a strategic move, PNC Bank integrated its PINACLE Connect platform with Oracle Fusion Cloud ERP, streamlining financial operations for corporate clients. Oracle also entered into a collaboration with Bloom Energy (NYSE:BE) to provide onsite power to Oracle Cloud Infrastructure data centers, leveraging Bloom’s fuel cell technology for efficient power delivery. These developments underscore Oracle’s active engagement in AI and cloud services, as well as its commitment to improving healthcare data systems.

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