Oracle stock price target raised to $331 from $208 at Stephens

Investing.com - Stephens raised its price target on Oracle (NYSE:ORCL) to $331.00 from $208.00 on Friday, while maintaining an Equal Weight rating on the stock. The company, currently valued at $892.3 billion, has seen its stock surge nearly 90% year-to-date, according to InvestingPro data.

The price target increase follows Oracle’s investor day on Thursday, where the company raised its Oracle Cloud Infrastructure (OCI) growth guidance from a 71% five-year compound annual growth rate to 75%. Oracle also provided long-term revenue and earnings guidance above Street expectations, projecting fiscal year 2030 revenue of $225 billion versus analyst estimates of $200 billion, and FY30 earnings per share of $21 compared to Street expectations of $18.47. The company’s current revenue growth of 9.7% and robust gross profit margin of 69.7% support these ambitious targets.

Despite these positive forecasts, Oracle’s stock moved up only 3% following the investor day presentation, which Stephens cited as evidence of difficulty in moving the stock price higher in the near term. InvestingPro analysis indicates Oracle is currently trading above its Fair Value, with a P/E ratio of 72.5x and elevated EBITDA multiples. Get access to 15+ additional ProTips and comprehensive valuation metrics with InvestingPro.

Oracle addressed several market concerns during the event, including OpenAI concentration, noting that $65 billion of recent contracts were with non-OpenAI customers. The company also provided examples of AI return on investment and suggested that OCI margins may not be as low as feared.

Stephens’ new price target is based on a 12.9x enterprise value to fiscal year 2 revenue multiple, reflecting the firm’s updated estimates following Oracle’s new guidance.

In other recent news, Oracle has captured attention with several analyst updates following its Financial Analyst Meeting and AI World event. Piper Sandler raised its price target for Oracle to $380 from $330, maintaining an Overweight rating due to Oracle’s ambitious long-term revenue goals, including a projected $225 billion by fiscal year 2030. Similarly, Guggenheim increased its price target to $400 from $375, highlighting Oracle’s five-year growth trajectory with a 31% compound annual growth rate in revenue. Scotiabank also raised its target to $360 from $350, after noting Oracle’s $65 billion in new contracted commitments from four customers.

KeyBanc reiterated its $350 price target, citing strong cloud infrastructure growth and a profitability estimate for Oracle’s AI data center project that exceeds expectations. Cantor Fitzgerald maintained its $400 price target, expressing confidence in Oracle’s AI strategy and its unique position as an end-to-end platform. These developments underscore a positive outlook among analysts, reflecting Oracle’s strategic initiatives in AI and cloud services.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.