Analysts at Wall Street investment bank Piper Sandler (PIPR) have upgraded their rating and price target on Oracle (ORCL) stock ahead of earnings.
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Piper Sandler took its rating on ORCL stock to a Buy-equivalent overweight from neutral previously, and lifted the price target on the shares to $270 from $190, a 42% increase. The new price target from Piper Sandler is 15% above where Oracle’s shares are currently trading.
Piper Sandler said it expects computer technology giant Oracle to be a big beneficiary of spending on artificial intelligence (AI) infrastructure in coming months and years. The analysts say they see “a bullish spending backdrop for AI infrastructure while elevating risks to the broader application category.”
Enterprise Demand
Piper Sandler also cited growing enterprise demand, saying that it could “add another layer of growth” for Oracle in coming quarters. Software companies Microsoft (MSFT) and SAP (SAP) were also singled out as strong performers in the current environment by Piper Sandler.
The investment bank also raised its price target on MSFT stock to $600, citing Azure’s cloud computing dominance, with “spending intentions surpassing 80% for the first time.” The analysts said that SAP’s increased spending intentions make it “one of the few high-conviction application growth stocks to own.” ORCL stock is up 42% this year.
Is ORCL Stock a Buy?
The stock of Oracle has a consensus Moderate Buy rating among 33 Wall Street analysts. That rating is based on 23 Buy and 10 Hold recommendations issued in the last three months. The average ORCL price target of $226.89 implies 3.69% downside from current levels.
