Oracle stock outlook boosted as Cantor Fitzgerald sees strong AI prospects

Investing.com - Cantor Fitzgerald has maintained its Overweight rating and $400.00 price target on Oracle (NYSE:ORCL), now valued at $892.3 billion, following the firm’s attendance at Oracle AI World in Las Vegas and the company’s Financial Analyst Meeting (FAM). According to InvestingPro data, Oracle is currently trading above its Fair Value, with analyst targets ranging from $175.14 to $415.

The research firm expressed increased confidence in Oracle’s AI strategy, noting the company’s "unique position as an end-to-end platform from AI infrastructure to database to applications" that enables it to deliver differentiated AI services, including agentic AI that leverages Oracle’s database and applications leadership. As a prominent player in the Software industry, Oracle has demonstrated strong market performance with an 89.7% year-to-date return.

Oracle raised its revenue outlook, driven by Oracle Cloud Infrastructure (OCI) and Software as a Service (SaaS) growth, though with less margin expansion than some investors anticipated. The company now forecasts a 31% compound annual growth rate (CAGR) for total revenue from fiscal 2025 to 2030, with earnings per share CAGR of 28%, reaching $225 billion and $21 respectively—15% and 13% higher than current Street forecasts. For deeper insights into Oracle’s growth metrics and financial health score, visit InvestingPro, which offers exclusive access to over 30 key financial metrics and professional analysis.

OCI’s long-range revenue projections were increased by $43 billion for fiscal years 2026-2030, representing an 11% cumulative increase over this period. Cantor Fitzgerald noted that 86% of this increase is concentrated in fiscal years 2029 and 2030, and does not include potential revenue from OpenAI.

Oracle’s backlog has grown to over $0.5 trillion, with the research firm suggesting further upside potential due to continuing demand/supply imbalance in the market.

In other recent news, Oracle has been the focus of several analyst updates following its recent financial and strategic developments. Scotiabank increased its price target for Oracle to $360, citing $65 billion in new contracted commitments from four customers, as revealed at AI World in Las Vegas. Guggenheim raised its price target to $400, highlighting Oracle’s five-year growth projection with a compound annual growth rate of 31% in total revenue to $225 billion by fiscal year 2030. UBS also raised its target to $380, acknowledging Oracle’s fiscal year 2030 revenue guidance and backlog metrics that surpassed Wall Street expectations. Jefferies joined in by increasing its price target to $400, pointing to Oracle’s new growth phase driven by AI infrastructure demand. Oppenheimer maintained its Perform rating, noting positive business momentum but expressing valuation concerns. These updates reflect Oracle’s strategic positioning in the AI sector and its ambitious financial outlook.

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