Oracle stock price target raised to $375 from $325 at TD Cowen

Published 10/09/2025, 15:26
Oracle stock price target raised to $375 from $325 at TD Cowen

Investing.com - TD Cowen raised its price target on Oracle (NYSE:ORCL) to $375.00 from $325.00 on Wednesday, while maintaining a Buy rating on the stock. The new target comes as Oracle’s stock has surged 63% over the past six months, with the company now commanding a market capitalization of $953.7 billion. According to InvestingPro analysis, Oracle is currently trading above its Fair Value.

The firm described Oracle’s latest quarter as "arguably the most momentous" in the company’s history, highlighting an unprecedented $317 billion quarter-over-quarter build in remaining performance obligations (RPO) during Q1, driven by several large AI contracts. With a solid financial health score of "GOOD" from InvestingPro and revenue growth of 9.7%, Oracle continues to demonstrate strong operational execution.

Oracle provided guidance for its Oracle Cloud Infrastructure (OCI) business for the next five years, targeting a 70% compound annual growth rate (CAGR) from $10 billion in fiscal year 2025 to $144 billion in fiscal year 2030.

TD Cowen increased its fiscal year 2029 OCI revenue estimate from $95 billion to $114 billion and raised its earnings per share target from approximately $15.25 to $16.75, projecting a 31% total revenue CAGR for fiscal years 2025-2029.

The new price target of $375 represents approximately 30 times TD Cowen’s fiscal year 2028 EPS estimate of about $12.50, with the firm reiterating Oracle as a "Top Pick" as it anticipates further stock re-rating as the company’s "model inflection unfolds."

In other recent news, Oracle has reported significant developments that could interest investors. The company began fiscal year 2026 with accelerating top-line growth and record sales performance in several key areas, including Remaining Performance Obligation (RPO), Cloud Revenue, and multi-cloud database revenue. Oppenheimer maintained a Perform rating on Oracle, citing impressive first-quarter results despite concerns about capital expenditures. Additionally, BMO Capital raised its price target for Oracle to $345, highlighting the company’s strong bookings and 359% year-over-year RPO growth. Piper Sandler also increased its price target to $330, attributing the rise to Oracle’s momentum in AI infrastructure, with a notable $317 billion surge in contracted backlog in a single quarter.

Oracle has launched an AI Center of Excellence for Healthcare, aiming to assist healthcare organizations in implementing and optimizing AI solutions. This center will provide access to Oracle experts and resources, fostering AI-enabled business transformation in healthcare. Furthermore, Oracle plans to integrate AI capabilities into its Health Patient Portal by 2026, allowing patients to receive plain-language explanations of their medical records. These developments reflect Oracle’s ongoing commitment to expanding its AI capabilities and enhancing its offerings across various sectors.

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