On Monday, a prominent analyst at Melius raised their rating for Oracle Corporation (NYSE: NYSE:ORCL) from Hold to Buy, setting a new price target of $210.00. The upgrade reflects a positive outlook on the company's innovative strides in cloud computing and artificial intelligence (AI).
The analyst cited Oracle's dynamic approach to partnerships and its AI-first Cloud development as key factors for the upgrade. Oracle's leadership, including Founder Larry Ellison and CEO Safra Catz, was praised for their creativity and effective use of Ellison's influence in the tech industry. The ability to secure important resources such as GPUs, along with strategic agreements with other Cloud CEOs, was highlighted as a competitive edge. Moreover, the close relationship with high-profile customers like Elon Musk was noted as a beneficial aspect of Oracle's expanding business.
Despite acknowledging that Oracle's stock has already seen a significant increase of 54% year-to-date, the analyst expressed confidence that the company's growth trajectory could continue. The forecast suggests that Oracle could achieve an earnings per share (EPS) run rate close to $8.50 within the next two years. With the major concerns for the company now seemingly addressed, the analyst justified a 25x multiple on the stock, especially as Oracle is expected to outpace competitors such as Salesforce (NYSE:CRM) and Adobe (NASDAQ:ADBE) in terms of growth rate.
Oracle's stock performance and the analyst's optimism underscore the company's potential in the rapidly advancing tech sector, particularly in AI and cloud services. The new price target of $210.00 represents a significant increase and indicates the analyst's belief in Oracle's continued upward movement in the market.
In other recent news, Tesla (NASDAQ:TSLA) has been in the spotlight due to a series of significant developments. The U.S. has implemented a 100% duty on electric vehicles (EVs), including those from China, a move that may impact Tesla's supply chains. Despite this, Tesla has received positive analyst coverage, with Deutsche Bank initiating a Buy rating and a $295 price target, and Morgan Stanley maintaining an Overweight rating with a $310.00 price target. Both firms highlighted Tesla's potential in areas beyond EVs, such as artificial intelligence, robotics, and energy storage.
In the international arena, the European Union is set to reduce proposed tariffs on Chinese EVs, including Tesla's, to slightly below 8%. This adjustment comes after new information was provided to the EU. Additionally, China has invited the European Commission for discussions to address trade disputes, including those concerning tariffs on Chinese EVs.
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