Intel surges more than 8% after chipmaker’s profits top expectations
Investing.com - RBC Capital has reiterated its Sector Perform rating and $310.00 price target on Oracle (NYSE:ORCL) ahead of the company’s upcoming Analyst Day. According to InvestingPro data, Oracle currently trades at a P/E ratio of 64.47, suggesting the stock is trading above its Fair Value.
The firm’s decision comes as Oracle prepares to hold its Analyst Day on October 16, which will run in conjunction with the Oracle AI World Conference taking place October 13-16 in Las Vegas, Nevada. The company, now valued at $799.2 billion, has demonstrated strong momentum with a 70% return year-to-date, despite an 8.82% decline over the past week.
RBC Capital expects Oracle to provide an updated Long-term Target Model during the event, which could offer new insights into the company’s financial outlook and strategic direction.
The research firm highlighted several key areas of interest for the upcoming event, including potential customer disclosures and announcements that could impact Oracle’s business trajectory.
RBC also expressed interest in learning more about the economics and margin impact of large Oracle Cloud Infrastructure (OCI) deals, additional OCI disclosures, and new leadership priorities at the technology company.
In other recent news, Oracle’s earnings call revealed a significant $317 billion quarter-over-quarter increase in remaining performance obligations, with management guiding to $144 billion in Oracle Cloud Infrastructure revenue for fiscal year 2030. Oracle has also launched an AI solution, Oracle Government Data Intelligence for Agriculture, aimed at helping governments monitor agricultural production and forecast potential food security issues. The solution uses data from satellite imagery, weather feeds, and other sources to provide valuable insights.
Bernstein SocGen Group has raised its price target for Oracle to $364, maintaining an Outperform rating, while Rothschild Redburn initiated coverage with a Sell rating and a price target of $175, citing concerns over potentially overvalued cloud revenue. Oracle’s credit ratings have been affirmed by major agencies, though S&P Global Ratings highlighted a negative outlook due to increased debt levels and aggressive capital expenditure plans. The company has raised its fiscal 2026 capital expenditure guidance to $35 billion, with forecasts suggesting spending could peak above $60 billion in fiscal 2028.
Additionally, Oracle is reportedly planning a $15 billion bond offering, including a rare 40-year bond, according to Bloomberg News. The bond sale is expected to occur in up to seven parts, with initial price discussions for the 40-year portion around 1.65 percentage points above similarly dated Treasuries.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.