TD Cowen increased its price target for Oracle Corporation (NYSE:ORCL) shares to $190, up from the previous target of $180, while maintaining a "Buy" rating. The adjustment follows the firm's positive outlook on Oracle's future revenue and cloud advancements.
The firm's reassessment came after participating in Oracle's CloudWorld conference and Analyst Day held in Las Vegas. During the event, Oracle outlined its ambitious revenue targets, including a new forecast for fiscal year 2029 of $104 billion, which represents a compound annual growth rate (CAGR) of 16% from fiscal year 2026 to 2029.
Additionally, Oracle's fiscal year 2026 revenue target was increased by $1 billion.
The analyst highlighted Oracle's introduction of several new artificial intelligence features and the release of Database 23ai, which are expected to contribute to the company's growth.
These innovations, alongside the flexibility offered by Oracle Database@AWS, are anticipated to expedite cloud migrations and could result in a revenue uplift of four to five times.
Oracle's strategic developments in cloud services and database management are poised to enhance its market position and drive revenue growth over the coming years. The new price target reflects the firm's confidence in Oracle's capacity to leverage these advancements for significant financial gains.
The raised price target indicates a bullish stance on Oracle's stock, suggesting that the company's investments in cloud technology and AI are likely to pay off, translating into increased shareholder value over the long term.
Oracle Corporation has become a focal point in the investment community following a series of financial forecasts and analyst ratings. BMO Capital has maintained its "Market Perform" rating for Oracle, with a steadfast price target of $173.00. The firm's optimistic stance is based on Oracle's new financial targets for fiscal year 2029 (FY29), which they believe may bolster investor confidence in the company's growth potential.
Simultaneously, Piper Sandler has increased its price target for Oracle to $185.00, citing substantial revenue growth, particularly in the cloud and artificial intelligence sectors.
The firm's upward revision in revenue estimates for fiscal year 2026 reflects a potential for sustained growth in Oracle's revenue.
However, Citi has opted to maintain a neutral stance on Oracle, despite the company's ambitious financial targets. The firm cites uncertainties in the rapidly evolving technology landscape as a reason for their caution. Meanwhile, Evercore ISI has raised its price target for Oracle to $190, emphasizing the company's robust growth outlook, particularly in its hyper-scale cloud business.
Deutsche Bank (ETR:DBKGn) has also shown confidence in Oracle, raising its price target to $200. The firm maintains a Buy rating on the stock, expressing belief in Oracle's cloud growth trajectory and strategic positioning.
InvestingPro Insights
Oracle Corporation (NYSE:ORCL) has demonstrated a robust performance with a noteworthy uptick in its share price, as reflected in the real-time data from InvestingPro. The company's market capitalization stands at a formidable $478.41 billion, and it is trading at a high earnings multiple with a P/E ratio of 40.52. This elevated P/E ratio, especially when considered in relation to near-term earnings growth, suggests that investors are expecting high future earnings from Oracle. Additionally, Oracle has shown a strong return over the last three months with a price total return of 15.72%.
An InvestingPro Tip highlights that Oracle has raised its dividend for 11 consecutive years, indicating a commitment to providing consistent shareholder returns. Furthermore, as a prominent player in the Software industry, Oracle's strategic investments in cloud services and database management could continue to strengthen its market position. For investors seeking a deeper dive into Oracle's financial health and future prospects, there are over 20 additional InvestingPro Tips available, offering comprehensive insights into the company's performance and valuation metrics.
Oracle's next earnings date is set for December 12, 2024, which will provide further clarity on the company's financial trajectory and the impact of its cloud and AI advancements. The InvestingPro Fair Value estimate currently stands at $129.27, offering a grounded perspective for investors considering Oracle's stock amid its recent gains and ambitious revenue targets.
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