Bank of America Securities analyst Bradley Sills maintained a Buy rating on Oracle today and set a price target of $368.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Bradley Sills has given his Buy rating due to a combination of factors including Oracle’s ambitious revenue and earnings growth targets for 2030, which are significantly above current market expectations. The company is projecting a compound annual growth rate of 31% in revenue and 28% in earnings per share, driven largely by its AI Infrastructure compute business, which boasts solid gross margins between 30% and 40%.
Oracle’s strategic positioning in the AI infrastructure market is a key driver for its expected growth, with Oracle Cloud Infrastructure (OCI) anticipated to become the primary growth engine. OCI is projected to account for 74% of Oracle’s revenues by 2030, with a remarkable 75% compound annual growth rate. Despite uncertainties surrounding the pace of datacenter buildouts due to supply constraints, Oracle’s vertically integrated architecture and competitive margins provide a strong foundation for sustained growth and profitability.
In another report released today, UBS also maintained a Buy rating on the stock with a $380.00 price target.