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Investing.com-- Jefferies raised its price target on Oracle Corporation (NYSE:ORCL), citing accelerating momentum in the company’s AI and cloud infrastructure businesses following upbeat takeaways from AI World and Oracle’s Financial Analyst Day.
Jefferies analysts raised PT to $400 from $360 and reiterated a "Buy" rating, saying Oracle is entering “a new growth phase” as it benefits from the AI infrastructure supply-demand imbalance and growing adoption of its cloud offerings.
The brokerage expects Oracle’s valuation to reflect “a rare acceleration story in software,” driven by stronger customer and partner sentiment.
Jefferies noted Oracle’s five-year targets signal an inflection, projecting total revenue to nearly quadruple to $225 billion by FY2030, representing a 31% compound annual growth rate, while earnings per share are forecast to rise 28% annually to $21.
Revenue from Oracle Cloud Infrastructure (OCI) is expected to surge at a 75% CAGR to $166 billion over the same period.
While Jefferies flagged potential concerns over rising capital expenditure needs, it said Oracle’s “One-Oracle” strategy -- integrating database, applications, infrastructure, and AI -- positions it as an emerging hyperscaler in the global cloud market.