Shares of Oracle (ORCL, Financial) rose about 13% to a 52-week high of $199 on Thursday after posting stronger-than-expected earnings and revenue for its fiscal fourth quarter.
Growth in Oracle's cloud business drove the results, with analysts crediting its multicloud partnerships and AI infrastructure push. Major cloud customers include Amazon (AMZN, Financial), Alphabet's Google (GOOGL), and Microsoft's Azure (MSFT, Financial).
Wall Street analysts responded by lifting their price targets. Piper Sandler's Brent Bracelin raised his target to $190 from $130 but maintained a Hold rating, noting concerns around capital intensity. Exane BNP Paribas' Stefan Slowinski boosted his target to $226, citing potential for Oracle's Cloud Infrastructure unit to reach $25 billion in annualized revenue by fiscal 2026.
Keybanc analyst Jackson Ader also raised his price target to $225, pointing to the company's growing backlog and ambitious targets.
Oracle is part of the Stargate AI project and continues to build momentum as demand for AI computing grows.
Is ORCL Stock a Buy?
Based on the one year price targets offered by 31 analysts, the average target price for Oracle Corp is $207.57 with a high estimate of $246.00 and a low estimate of $150.00. The average target implies a upside of +3.86% from the current price of $199.86.
Based on GuruFocus estimates, the estimated GF Value for Oracle Corp in one year is $142.51, suggesting a downside of -28.70% from the current price of $199.86.
