Evercore ISI analyst Kirk Materne has maintained their bullish stance on ORCL stock, giving a Buy rating on July 11.
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Kirk Materne has given his Buy rating due to a combination of factors that highlight Oracle’s strong growth potential. The company’s fiscal year 2026 outlook exceeded expectations, and a significant $30 billion annual contract positions Oracle as a major player in the global hyperscaler market. Materne breaks down Oracle Cloud Infrastructure (OCI) into segments, projecting substantial growth rates for each, with core OCI expected to grow at a 49% CAGR, Database as a Service (DBaaS) at 37%, and AI services at 104% through fiscal year 2029.
Despite some pressure on margins due to the shift towards AI and cloud services, Materne anticipates operating income to grow at a 13% CAGR, with EPS increasing by 11% annually. Oracle’s strengths in sovereign and AI workloads, alongside a robust applications business and the migration of database customers to the cloud, support a positive long-term outlook. The price target has been raised to $270, reflecting confidence in Oracle’s ability to accelerate revenue growth at scale, a rarity among large tech companies.
According to TipRanks, Materne is a 5-star analyst with an average return of 12.1% and a 61.02% success rate. Materne covers the Technology sector, focusing on stocks such as Microsoft, ServiceNow, and Snowflake.
In another report released on July 11, DBS also maintained a Buy rating on the stock with a $270.00 price target.