Oracle stock price target raised to $380 from $360 by UBS on cloud growth

Investing.com - UBS raised its price target on Oracle (NYSE:ORCL) to $380.00 from $360.00 on Friday, while maintaining a Buy rating on the stock. The software giant, currently valued at $892.3 billion, has seen its stock surge nearly 80% over the past year, according to InvestingPro data.

The price target increase comes just five weeks after Oracle provided fiscal year 2030 revenue guidance and backlog metrics that significantly exceeded Wall Street expectations, with the company subsequently raising these projections again at its Investor Day. With a P/E ratio of 72.5 and strong financial health score from InvestingPro, Oracle continues to trade at premium valuations, reflecting investor confidence in its growth trajectory.

Oracle has increased its FY2030 cloud infrastructure/OCI revenue guidance by an additional $22 billion to $166 billion and disclosed that its deal backlog has grown to over $500 billion.

The company also set FY2030 guidance well above UBS estimates, projecting total revenue of $225 billion compared to UBS’s estimate of $188 billion, and earnings per share of $21.00 versus UBS’s estimate of $15.40.

UBS maintains its Buy rating based on the belief that Oracle’s stock can move higher as the company executes on this accelerated guidance, though noting that Oracle and its customers, including OpenAI, Meta and xAI, need to deliver on these projections.

In other recent news, Oracle has been the subject of several analyst updates following its AI World conference and analyst day. Jefferies raised its price target for Oracle to $400 from $360, citing the company’s entry into a new growth phase driven by AI infrastructure supply and demand. Similarly, Mizuho increased its price target to $400 from $350, highlighting Oracle’s ambitious fiscal year 2030 targets of $225 billion in revenue and $21 earnings per share, which surpass current consensus estimates. Stifel maintained its Buy rating with a $350 price target, noting Oracle’s revised fiscal year 2030 Cloud Infrastructure revenue target of $166 billion, an increase of $22 billion from previous forecasts.

Wolfe Research reiterated its Outperform rating with a $400 price target, emphasizing Oracle’s significant upward revision of its top-line forecast, projecting a $43 billion increase in cumulative Cloud Infrastructure revenue from FY26-30. Evercore ISI also raised its price target to $385 from $350, maintaining an Outperform rating and noting Oracle’s updated long-term guidance, which includes a 31% compound annual growth rate in revenue and a 28% growth rate in earnings per share by fiscal year 2030. These developments reflect Oracle’s strategic focus on expanding its cloud infrastructure and AI capabilities, positioning the company for substantial growth in the coming years.

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