Oracle Price Target (ORCL) Trimmed, Analyst Remains Bullish On Stock From Here

Oracle's stock (NYSE:ORCL) is 1.62% higher in pre-market trading at $145.13, shrugging off a price target reduction from Bernstein as the firm reinforced its confidence in the enterprise software giant's artificial intelligence ambitions.

The move comes as markets digest Oracle's recently announced funding plan designed to support an aggressive datacenter expansion strategy.

Bernstein lowered its price target on Oracle to $313 from $339 while maintaining an Outperform rating on the shares. The revision represents the firm's second adjustment in recent months, following a December reduction from $364 to $339 after Oracle delivered mixed second-quarter fiscal 2026 results that included elevated capital expenditure commitments.

Despite the downward revision, the new target still implies substantial upside from current levels, underscoring the firm's conviction that Oracle's transformation into a major cloud infrastructure provider remains on track.

The catalyst for renewed analyst confidence centers on Oracle's resolution of a critical funding question that had weighed on the stock. One of the major overhangs facing Oracle has been uncertainty surrounding how the company would finance the massive AI datacenter build-out required to fulfill contracts signed last year with marquee clients including OpenAI, Meta, NVIDIA, and TikTok.

Last Monday, Oracle announced a $45 billion to $50 billion debt and equity financing program, providing markets with concrete details about its capital structure plans. Bernstein estimates this funding will meet Oracle's requirements through fiscal year 2028, effectively removing a significant source of investor anxiety.

The financing announcement represents a carefully calibrated approach to maintaining Oracle's investment-grade credit rating while pursuing what management has characterized as a transformational opportunity in AI infrastructure.

The company intends to balance debt and equity issuance to avoid over-leveraging its balance sheet, though the substantial scale of the fundraising has sparked debate about the sustainability of Oracle's capital-intensive growth strategy. A class-action lawsuit filed by bondholders, including the Ohio Carpenters' Pension Plan, alleges the company made misleading statements regarding its borrowing plans related to a $300 billion AI infrastructure partnership with OpenAI.

Despite these legal challenges and concerns about rising debt levels, some analysts maintain an optimistic view of Oracle's competitive positioning. Bernstein has previously highlighted Oracle's rapid transition into a major hyperscaler, projecting cloud infrastructure revenue could reach $144 billion by fiscal 2030.

This trajectory would potentially allow Oracle to match or surpass Google Cloud by the end of the decade, representing a dramatic shift in the competitive landscape of cloud computing. A price target cut that continues to offer a perceived upside of more than 2x from here strikes a bullish tone. Markets have struggled to see things the same way however in recent times, with the stock continuing to trade more than 50% below the highs struck barely five months ago.

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