Bank of America Securities analyst Bradley Sills maintained a Buy rating on Oracle today and set a price target of $368.00.
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Bradley Sills has given his Buy rating due to a combination of factors that highlight Oracle’s strategic positioning in the AI infrastructure market. Oracle’s transition into a hyperscaler with an AI-native approach is a significant factor, as the company has aligned its capital expenditures and GPU density to match its peers. The rapidly expanding market for AI infrastructure, projected to reach $200 billion annually by 2028, presents a substantial growth opportunity that Oracle is well-positioned to capture through its aggressive investment strategy.
Another critical aspect of Sills’s rating is the attractive economics of Oracle’s AI infrastructure projects, which are expected to yield internal rates of return (IRR) between 9% and 16%. This profitability is supported by Oracle’s financing strategy, which includes low-cost debt and structured contracts that ensure stable cash flows. By securing non-cancelable, take-or-pay contracts, Oracle minimizes risk and enhances cost visibility, differentiating itself from competitors who are building speculative capacity. These strategic moves underscore Oracle’s emergence as a profitable AI-native hyperscaler, justifying the Buy rating and the price objective of $368.
In another report released on October 24, Phillip Securities also maintained a Buy rating on the stock with a $350.00 price target.