Oracle stock price target raised to $400 from $360 at Jefferies

Investing.com - Jefferies raised its price target on Oracle (NYSE:ORCL) to $400.00 from $360.00 on Friday, while maintaining a Buy rating on the stock. The new target sits near the high end of analyst estimates, which range from $175.14 to $415, according to InvestingPro data.

The firm’s decision follows its attendance at AI World and Oracle’s analyst day in Las Vegas, where it also hosted a partner dinner. Jefferies cited Oracle’s entry into a new growth phase as the company capitalizes on the AI infrastructure supply and demand imbalance. This optimism appears justified, with Oracle’s stock delivering an impressive 144% return over the past six months.

Oracle’s targets signal a growth inflection, with projections of 75% five-year compound annual growth rate (CAGR) for Oracle Cloud Infrastructure (OCI), 31% for total revenue, and 28% for earnings per share (EPS).

Jefferies noted that partner and customer feedback has become "notably more positive" for Oracle’s offerings. The new price target of $400 represents 19 times Oracle’s projected fiscal year 2030 earnings per share.

The firm characterized Oracle as a "rare acceleration story in software," suggesting the current valuation reflects the company’s growth potential in the artificial intelligence infrastructure market.

In other recent news, Oracle has announced ambitious fiscal year 2030 targets, projecting $225 billion in revenue and $21 earnings per share, surpassing current consensus estimates. This announcement has prompted multiple analysts to adjust their price targets and ratings for the company. Mizuho raised its price target for Oracle to $400, maintaining an Outperform rating, while Evercore ISI also increased its target to $385, citing Oracle’s updated long-term guidance and strong growth projections. Wolfe Research reiterated an Outperform rating with a $400 target, highlighting Oracle’s significant upward revision of its Oracle Cloud Infrastructure (OCI) revenue forecast and a projected 28% earnings per share compound annual growth rate. Stifel maintained a Buy rating with a $350 price target after Oracle’s management raised its OCI revenue target to $166 billion, exceeding previous forecasts. Citizens reiterated its Market Outperform rating with a $342 target, emphasizing Oracle’s strategic position in AI workloads for major clients like OpenAI and Nvidia. These developments reflect Oracle’s potential for growth, driven by its expanding cloud infrastructure and AI capabilities.

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