Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - TD Cowen has reiterated its Buy rating and $375.00 price target on Oracle (NYSE:ORCL) ahead of the company’s upcoming AI World event and Analyst Day. According to InvestingPro data, analysts maintain a bullish consensus on Oracle, with price targets ranging from $175 to $400, while 19 analysts have recently revised their earnings expectations upward.
The firm maintains Oracle as a "Top Pick" in its coverage universe, with analyst Derrick Wood expressing optimism about the company’s upcoming presentations.
Oracle AI World is scheduled to begin on October 13, with the Analyst Day following on October 16, which TD Cowen describes as "the most awaited ORCL AD we’ve seen in the 20 years we’ve covered the stock."
The research firm expects Oracle to announce new fiscal year 2030 revenue and operating income targets that will likely exceed current market consensus expectations.
TD Cowen has introduced its own fiscal year 2030 estimates for Oracle, updated its Stargate model, and detailed gross margin assumptions based on what it characterized as "various recent bullish checks" on the company.
In other recent news, Oracle announced the launch of its Health Connection Hub, designed to streamline data sharing for U.S. healthcare providers. This new platform reportedly reduces processing times for Social Security Administration disability benefit claims by 50%. In financial developments, Phillip Securities initiated coverage of Oracle with a Buy rating and set a price target of $350, citing a significant increase in Oracle’s remaining performance obligations backlog. This growth is linked to multi-billion-dollar deals, including major multicloud partnerships and AI initiatives. Meanwhile, Oracle’s stock faced pressure due to concerns about the profitability of its GPU-powered cloud services, generating $900 million in revenue with a 14% gross margin. Despite these concerns, Mizuho maintained an Outperform rating on Oracle, also with a $350 price target, viewing the stock’s decline as a buying opportunity. Additionally, Oracle NetSuite expanded its SuiteCloud platform, adding new AI capabilities to enhance integration and workflow design. This expansion includes an AI Connector Service that supports the integration of external AI models while managing their interaction with NetSuite data.
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