Oracle stock price target raised to $400 from $271 at Cantor Fitzgerald

Investing.com - Cantor Fitzgerald raised its price target on Oracle (NYSE:ORCL) to $400 from $271 on Wednesday, while maintaining an Overweight rating on the stock. Oracle, currently trading at $241.51, has shown remarkable momentum with a 63% surge over the past six months, according to InvestingPro data.

The significant price target increase follows Oracle’s reported 359% year-over-year growth in Remaining Performance Obligations (RPO), representing an increase of $317 billion as major artificial intelligence companies signed contracts with Oracle during the quarter. The company maintains a robust gross profit margin of 70.5% and has achieved 8.4% revenue growth in the last twelve months.

Oracle has substantially increased its Oracle Cloud Infrastructure (OCI) estimates with visibility and revenue guidance extending to fiscal year 2030, which Cantor Fitzgerald believes may have additional upside potential when comparing the $317 billion in incremental contract signings to the cumulative fiscal 2026-2030 OCI revenue guidance.

The new $400 price target represents approximately 10.5 times fiscal 2028 estimated Enterprise Value to Revenue (EV/R) ratio, compared to the previous target which was 11.5 times, using Cantor’s pro forma balance sheet calculations.

Cantor Fitzgerald noted that the premium valuation is "more than warranted" given Oracle’s positioning to benefit from secular growth trends in AI training and inferencing, as well as potential upside to increased forecasts. With an overall "GOOD" Financial Health score from InvestingPro, which offers 8 additional exclusive insights about Oracle’s performance and valuation, the company appears well-positioned for future growth.

In other recent news, Oracle Corporation reported its first-quarter earnings for fiscal year 2026, which showed a slight miss in both earnings per share (EPS) and revenue compared to analyst forecasts. The company posted an EPS of $1.47, just below the expected $1.48, and actual revenue of $14.93 billion, which fell short of the $15.03 billion forecast. Despite these misses, Oracle’s strong cloud growth and positive future guidance have attracted attention from analysts. Citizens JMP raised Oracle’s stock price target to $342, maintaining a Market Outperform rating, citing record-breaking remaining performance obligations of $455 billion. UBS also increased its price target for Oracle to $360, maintaining a Buy rating, based on the company’s disclosure of $317 billion in incremental backlog. This backlog supports Oracle’s growth forecast for its cloud infrastructure segment to expand significantly over the next five years. These developments indicate a strong focus on cloud growth, which is expected to drive Oracle’s future performance.

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