Oracle stock price target raised to $300 from $245 at Mizuho on AI growth

Investing.com - Mizuho raised its price target on Oracle (NYSE:ORCL) to $300 from $245 on Friday, while maintaining an Outperform rating on the stock. The new target represents significant upside potential from Oracle’s current trading price of $244.96, though InvestingPro analysis suggests the stock is currently trading above its Fair Value.

The firm cited Oracle’s positioning as a "structural AI winner" at the beginning of the enterprise AI revolution, with increased confidence in the company’s growth trajectory.

Mizuho highlighted Oracle Cloud Infrastructure’s differentiated architecture and growing demand for AI training workloads as key drivers of growth inflection, noting the company’s end-to-end AI stack spans vertical and horizontal applications, mission-critical database technology, and infrastructure for AI training and inference.

The firm projects Oracle will capture a significant portion of AI-driven enterprise spending, accelerating revenue growth at approximately 27% CAGR and operating income at roughly 24% CAGR through fiscal year 2030.

Mizuho’s new price target is based on 18x FY28E EBIT and identified the upcoming Analyst Day/Oracle AI World in October as a potential catalyst for share re-rating, with the firm maintaining Oracle as one of its top picks.

In other recent news, Oracle announced an expanded partnership with Google Cloud, allowing Oracle customers to access Google’s Gemini AI models through Oracle Cloud Infrastructure’s Generative AI service. This collaboration will initially include the Gemini 2.5 model, with plans to integrate more models for various applications such as video, image, and speech generation. Meanwhile, Oracle is reducing its workforce in its cloud division to manage costs while continuing to invest in AI infrastructure. Despite the layoffs, the company is still recruiting new talent in this area.

In analyst updates, Bernstein SocGen Group has raised its price target for Oracle to $308, citing the company’s cloud growth and positioning as a global hyperscaler. TD Cowen also increased its price target to $325, following OpenAI’s announcement of an expanded partnership with Oracle. Furthermore, BofA Securities raised its price target to $295, highlighting Oracle’s potential benefit from the positive sentiment surrounding the AI cycle. These developments reflect Oracle’s strategic focus on cloud and AI technologies.

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