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Citi sees AI partnerships, but awaits Oracle stock profitability drivers

EditorEmilio Ghigini
Published 12/09/2024, 10:28
© Reuters.
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On Thursday, Citi maintained its Neutral rating on Oracle Corporation (NYSE:ORCL) stock, with a steady price target of $157.00. The decision comes as Oracle prepares for its financial analyst day on September 12.


Citi's analysis followed engagements at the Cloud World Conference in Las Vegas, where discussions with numerous partners and an Oracle Cloud Infrastructure (OCI) deep dive briefing took place.


The conference displayed a heightened level of excitement compared to previous years, with a dedicated AI partner section within the expo hall, showcasing many partners operating on OCI. Feedback from partners, particularly regarding selective applications demand, was notably positive.


Citi's stance remains cautious as they look for additional evidence on Oracle's database migration potential. This aspect is seen as a significant factor that could influence Oracle's profitability and long-term value. The firm's current position reflects a wait-and-see approach, pending further data points that could impact Oracle's financial outlook.


Oracle's financial analyst day is anticipated to provide more insights into the company's strategies and performance, especially concerning its cloud services and database technologies. The market awaits to see if the information presented will align with Citi's expectations and potentially affect the company's stock performance.


This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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