Analyst Derrick Wood of TD Cowen maintained a Buy rating on Oracle, boosting the price target to $275.00.
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Derrick Wood has given his Buy rating due to a combination of factors that highlight Oracle’s potential for significant revenue growth. The expansion of Oracle’s deal with OpenAI, which involves a substantial increase in data center capacity, suggests that Oracle’s revenue could surpass previous expectations. This new development indicates that Oracle’s revenue in fiscal year 2029 could reach approximately $150 billion, significantly higher than the earlier guidance of $104 billion.
Additionally, the potential for a $150 billion or more contract with OpenAI supports the belief that Oracle’s revenue growth could exceed 50% in fiscal year 2028. The anticipated increase in revenue and earnings per share (EPS) growth rates further strengthens the case for Oracle’s stock. These factors, combined with the raised price target of $275, underscore the positive outlook for Oracle’s future performance and investor demand.
Wood covers the Technology sector, focusing on stocks such as Oracle, ServiceNow, and Atlassian. According to TipRanks, Wood has an average return of 13.6% and a 58.87% success rate on recommended stocks.
In another report released yesterday, Bernstein also maintained a Buy rating on the stock with a $225.00 price target.