Oracle Stock (NYSE: ORCL) Price Target Raised by Citi

Oracle Corporation (NYSE: ORCL) has garnered increased attention from financial analysts, with several firms adjusting their price targets and ratings. The adjustments come after a recent pullback in Oracle's stock price, presenting what some analysts view as an attractive entry point for investors.

Oracle's stock is currently trading at $301.50, up 1.53% in pre-market trading. This recent uptick reflects a broader positive sentiment fueled by analyst upgrades and anticipated company updates. Year to date, the stock has seen a gain of 78.86%.

Citi raised its price target on Oracle to $415 from $395, reiterating a “Buy” rating. The investment firm believes the recent 10% decline in Oracle's share price, driven by concerns over backlog quality and profitability, constitutes a buying opportunity. Citi emphasizes Oracle's expanding customer base as a key driver for future cloud growth, suggesting the company is well-positioned to capitalize on increasing demand for its cloud services.

Evercore ISI analyst Kirk Materne also increased the firm's price target on Oracle, moving it to $350 from $340, while maintaining an “Outperform” rating. The revision precedes Oracle AI World and an upcoming financial analyst meeting in Las Vegas, where Materne anticipates updated long-term revenue and EPS guidance. Materne highlighted Oracle's fiscal year 2030 Oracle Cloud Infrastructure (OCI) revenue projection of $144 billion. The analyst suggests a refreshed revenue forecast of $200 billion for FY30 “seems reasonable.” Furthermore, Materne projects annualized EPS growth of approximately 20% from FY25 to FY30.

Other analysts have also expressed bullish sentiment towards Oracle, with Evercore ISI previously increasing its price target to $340 from $270, citing accelerating OCI backlog and expectations for faster revenue and EPS growth. Jefferies raised its price target to $220, acknowledging strong momentum in the cloud business. Citizens JMP increased its target to $240, highlighting the company's robust cloud growth, and RBC Capital elevated its price target to $195, recognizing higher-than-expected capital expenditure driven by strong demand.

The consensus among analysts appears to be that Oracle's strategic investments in cloud infrastructure and its expanding customer base will continue to drive revenue growth. The upcoming financial analyst meeting is keenly anticipated by the market, with expectations of updated financial guidance that could further solidify investor confidence. The positive revisions in price targets reflect the growing belief that Oracle is on a strong growth trajectory, particularly in the cloud computing space.

Analyst Summary: Bull and Bear Cases

The recent analyst actions underscore a generally positive outlook for Oracle, driven by the company's expanding customer base, anticipated updates to long-term financial guidance, and strong performance in cloud services. As Oracle approaches its financial analyst meeting, the market will be closely watching for further details on the company's long-term strategy and financial projections.