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Investing.com - Piper Sandler has raised its price target on Oracle (NYSE:ORCL) to $330.00 from $270.00 while maintaining an Overweight rating on the stock. The upgrade comes as Oracle’s stock has delivered an impressive 46.12% return year-to-date, though InvestingPro analysis indicates the stock is currently trading above its Fair Value.
The research firm cited Oracle’s transformation "from technology stalwart into a secular winner in AI infrastructure" as the primary reason for the increased target, noting that the company’s contracted backlog surged by $317 billion in a single quarter. With a market capitalization of $678.36 billion and projected revenue growth of 17% for fiscal 2026, Oracle’s transformation is reflected in its premium valuation, trading at a P/E ratio of 53.97.
Oracle’s remaining performance obligation (RPO) has risen to $455 billion, with cloud RPO specifically growing nearly 500% year-over-year, according to Piper Sandler’s analysis.
The firm expressed increasing confidence in Oracle Cloud Infrastructure’s (OCI) growth trajectory, projecting it could surpass $32 billion in fiscal 2027, compared to $2 billion in fiscal 2022.
Piper Sandler also forecasts that Oracle’s Infrastructure as a Service (IaaS) and Software as a Service (SaaS) segments combined could exceed 50% of the company’s revenue mix next year, growing well over 40% year-over-year.
In other recent news, Oracle has made notable advancements in its healthcare initiatives by launching an AI Center of Excellence for Healthcare. This center aims to assist healthcare organizations in implementing and optimizing AI solutions. Additionally, Oracle plans to enhance its Health Patient Portal by integrating AI capabilities, allowing patients to receive plain-language explanations of their medical records. These new features are expected to be generally available in 2026.
Oracle’s recent first-quarter results have garnered attention from analysts. Oppenheimer maintained a Perform rating, highlighting impressive top-line growth and record sales performance across key metrics. Meanwhile, Guggenheim raised its price target for Oracle to $375, citing the company’s strong cloud performance and its history of technological innovation. Barclays also increased its price target to $347, attributing this to significant growth in Oracle’s remaining performance obligations due to large AI contracts. These developments underscore Oracle’s ongoing expansion and innovation in both AI and cloud services.
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