Gold prices bounce off 3-week lows; demand likely longer term
On Friday, TD Cowen analysts maintained their Buy rating on Oracle (NYSE:ORCL) stock, keeping the price target steady at $210. The software giant, now commanding a market capitalization of $485.3 billion, has shown impressive momentum with a 40% return over the past year. The analysts expressed optimism about Oracle’s upcoming fourth-quarter report, scheduled for June 11, citing strong demand for Oracle Cloud Infrastructure (OCI). According to InvestingPro analysis, Oracle is currently trading above its Fair Value.
The analysts anticipate a 10% constant currency growth for Oracle’s fourth quarter, compared to 8% in the previous quarter. This projection builds on Oracle’s current revenue growth of 6.23% and impressive gross profit margin of 71%. They noted robust demand for OCI from Oracle’s largest customers, which is contributing to the momentum in multi-cloud deployments and strengthening Fusion migrations.
According to the analysts, the potential for OCI growth in fiscal year 2026 remains underestimated and not fully reflected in current models. They expect Oracle to provide a strong outlook for OCI in the upcoming fiscal year.
The reiterated Buy rating and price target reflect confidence in Oracle’s strategic initiatives and its ability to capitalize on growing demand for cloud services.
In other recent news, Oracle has introduced AI-powered anomaly detection and in-memory processing enhancements to its Utilities Customer Platform. These upgrades aim to improve meter data management by reducing manual interventions and operational costs, available to customers at no extra charge. Oracle’s platform now processes meter data 70% faster and reduces storage requirements by 37%, enhancing customer satisfaction and loyalty. In a strategic healthcare move, Oracle Health has partnered with Cleveland Clinic and G42 to develop an AI-based healthcare platform, intending to improve patient care through advanced data analytics. This collaboration will initially focus on the United States and the United Arab Emirates, aiming to provide high-quality, affordable care globally.
Barclays (LON:BARC) has maintained its Overweight rating on Oracle, citing the company’s deployment of NVIDIA (NASDAQ:NVDA) GB200s as a positive development for future revenue. Oracle’s recent cloud day event showcased advancements in AI, bolstered by NVIDIA’s announcement of Oracle’s use of Blackwell GPUs. The company plans to construct one of the largest Blackwell clusters, providing various deployment options through its cloud infrastructure. Additionally, Oracle’s aggressive pricing strategy in the cloud market, supported by its database business, has allowed it to offer competitive pricing and gain market share. This approach, coupled with Oracle’s Gen 2 cloud platform, has positioned it as a strong contender in the cloud industry.
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