Oracle stock price target maintained at $240 by Citizens JMP on cloud deals

Investing.com - Citizens JMP analyst reiterated a Market Outperform rating and $240.00 price target on Oracle (NYSE:ORCL), a prominent player in the software industry with a market capitalization of $646 billion, following recent cloud service agreements. According to InvestingPro data, the company maintains strong financial health with consistent profitability.

Bloomberg reported on Wednesday that OpenAI will rent additional capacity from Oracle totaling approximately 4.5 gigawatts of data center power in the United States. The report indicated that Stargate makes up at least part of the disclosed contract.

According to Bloomberg, potential sites are under consideration in Texas, Michigan, Wisconsin, and Wyoming. The report also mentioned plans to expand the Abilene site from a current power capacity of 1.2 gigawatts to about 2 gigawatts.

Oracle filed a Form 8-K on Monday disclosing it had "signed multiple large cloud services agreements including one that is expected to contribute more than $30 billion in annual revenue starting in FY28."

Oracle stock has increased 39% year to date, significantly outperforming both the S&P 500 and the Russell 3000, which have each risen 6% during the same period.

In other recent news, Oracle Corp . reported strong operating results for fiscal 2025, with revenues increasing by 8.4% to $57.4 billion, driven by a 24% growth in cloud services to $24.5 billion. However, S&P Global Ratings revised its outlook on Oracle to negative, highlighting concerns over the company’s capital expenditure, which more than tripled to $21 billion, and its impact on free operating cash flow. S&P forecasts that Oracle’s fiscal 2026 revenues will grow by 16% to approximately $67 billion, but capital spending is expected to rise further, potentially affecting the company’s credit rating. Meanwhile, Oracle has entered into a significant cloud service agreement worth over $30 billion, expected to commence in fiscal 2028, as disclosed in their recent 8-K filing. This development is part of Oracle’s broader partnership with OpenAI, which includes securing 4.5 gigawatts of data center power in the U.S. for AI needs. BMO Capital raised its price target for Oracle to $245, maintaining an Outperform rating, while DA Davidson increased its target to $220, citing the major cloud service deal with ByteDance. William Blair also reiterated its Outperform rating, emphasizing Oracle’s strong database market position and multicloud deployment capabilities.

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