Oracle stock price target raised to $400 from $375 at Guggenheim

Investing.com - Guggenheim raised its price target on Oracle (NYSE:ORCL) to $400.00 from $375.00 on Friday, while maintaining a Buy rating on the stock. The company’s shares have surged 144% over the past six months, pushing its market capitalization to $892 billion. According to InvestingPro data, Oracle trades at a P/E ratio of 72.5, reflecting high growth expectations.

The price target increase follows Oracle’s 2025 Financial Analyst Day, where the company outlined a five-year growth trajectory with projected total revenue CAGR of 31% to $225 billion by FY30 and an EPS CAGR of 28% to $21 over the same period. The company’s current revenue stands at $59 billion with a 9.7% growth rate. InvestingPro’s Financial Health Score of "GOOD" suggests strong fundamentals supporting these ambitious targets.

Oracle provided detailed growth and margin profiles across different components of its IaaS revenue, revealing that AI infrastructure deals generate 30-40% gross margins over contract lifetimes, higher than market speculation.

Guggenheim highlighted Oracle’s clustering technology (RAC) for AI training workloads as part of a "generational shift" at the company, noting that Oracle recently raised its OCI assumptions from its F1Q26 earnings call just weeks ago.

The research firm continues to rate Oracle as its "Best Idea," citing the massive opportunity ahead that should lead to revenue acceleration over the next few years, driven primarily by AI training deals that are "comfortably profitable today and are likely to be more so over time."

In other recent news, Oracle has made significant announcements concerning its future financial targets and growth potential. The company raised its fiscal year 2030 revenue guidance to $225 billion and earnings per share to $21, surpassing current consensus estimates. Oracle also increased its Oracle Cloud Infrastructure (OCI) revenue target to $166 billion, up by $22 billion from earlier forecasts, and discussed anticipated AI OCI gross margins of 30-40%. UBS and Jefferies have both raised their price targets for Oracle, now set at $380 and $400, respectively, maintaining a Buy rating. Mizuho also increased its price target to $400, citing Oracle’s AI growth prospects. Meanwhile, Stifel reiterated a Buy rating, maintaining a price target of $350. Oppenheimer continues to hold a Perform rating, noting positive business momentum despite valuation concerns. These developments highlight Oracle’s strategic focus on AI and cloud growth, as discussed at recent investor and analyst meetings.

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