Analyst Derrick Wood from TD Cowen maintained a Buy rating on Oracle (ORCL – Research Report) and increased the price target to $250.00 from $225.00.
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Derrick Wood has given his Buy rating due to a combination of factors that indicate strong future growth for Oracle. One of the primary reasons is a newly signed deal, which Oracle expects to contribute over $30 billion in revenue by fiscal year 2028. This agreement is anticipated to significantly boost Oracle’s revenue growth estimates from approximately 17% to over 30%, marking it as the largest deal in the company’s history.
Additionally, Oracle’s MultiCloud database revenue is experiencing substantial growth, exceeding 100%, and the company has secured multiple large cloud service agreements. These developments, alongside the potential acquisition of TikTok by a US buyer, further strengthen Oracle’s market position. The deal underscores Oracle Cloud Infrastructure’s (OCI) unique architecture and competitive pricing, which are expected to drive significant growth in remaining performance obligations (RPO) and revenue. As a result, Wood has raised the price target for Oracle’s stock to $250, reflecting confidence in the company’s future performance.
According to TipRanks, Wood is a 5-star analyst with an average return of 13.8% and a 59.36% success rate. Wood covers the Technology sector, focusing on stocks such as Oracle, ServiceNow, and Atlassian.
In another report released today, Stifel Nicolaus also upgraded the stock to a Buy with a $250.00 price target.