Oracle stock price target raised to $360 from $350 at Scotiabank

Investing.com - Scotiabank raised its price target on Oracle (NYSE:ORCL) to $360.00 from $350.00 on Friday, while maintaining a Sector Outperform rating on the stock. With Oracle’s current market capitalization at $892.3 billion and a P/E ratio of 72.46, InvestingPro analysis indicates the stock is trading above its Fair Value.

The price target increase follows Scotiabank’s attendance at AI World in Las Vegas, where Oracle management revealed $65 billion in incremental contracted commitments from four customers in the past month, none of which are OpenAI. This news comes as Oracle demonstrates strong momentum, with a remarkable 144% price return over the past six months and revenue growth of 9.67%.

Oracle shared its fiscal 2030 EPS target of $21 per share, which exceeded market expectations that had risen to $20+, according to Scotiabank’s analysis. InvestingPro data shows Oracle maintains a "GOOD" overall financial health score, with particularly strong profitability metrics and a robust gross profit margin of 69.66%. Subscribers can access 15+ additional ProTips and comprehensive financial analysis in the Pro Research Report.

The company also disclosed a 30-40% gross margin forecast for its NeoCloud business at maturity, clarifying that costs would ramp up over time. This projection addresses concerns about Oracle’s ability to monetize the full useful life of chips.

Oracle stated it would be prepared to use debt, vendor financing, and loans to fund datacenter capital requirements, which are factored into the EPS target, according to Scotiabank’s report from a group discussion with the company.

In other recent news, Oracle has seen a flurry of activity following its Financial Analyst Day, with several firms adjusting their outlook on the company. Guggenheim raised its price target for Oracle to $400, citing a projected five-year growth trajectory that includes a total revenue compound annual growth rate (CAGR) of 31% and earnings per share (EPS) CAGR of 28% by fiscal year 2030. UBS also increased its price target to $380, highlighting Oracle’s fiscal year 2030 revenue guidance and backlog metrics that surpassed Wall Street expectations.

Jefferies joined the trend, raising its price target to $400 after attending Oracle’s analyst day and noting the company’s new growth phase in AI infrastructure. Mizuho similarly adjusted its price target to $400, pointing to Oracle’s new fiscal year 2030 targets of $225 billion in revenue and $21 in EPS, which are above current consensus estimates. Meanwhile, Oppenheimer maintained a Perform rating, acknowledging positive business momentum but expressing valuation concerns. These developments underscore Oracle’s strategic positioning as it leverages opportunities in the AI sector and cloud growth.

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