In a report released yesterday, Derrick Wood from TD Cowen reiterated a Buy rating on Oracle, with a price target of $400.00.
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Derrick Wood’s rating is based on several key factors that suggest a positive outlook for Oracle’s stock. Firstly, the anticipated acceleration in Oracle Cloud Infrastructure (OCI) growth is expected to reverse recent negative sentiment. This growth is projected to be bolstered by the Abilene project coming online, which is expected to significantly increase capacity and drive OCI expansion.
Additionally, Derrick Wood highlights that Oracle’s capital expenditure and financing needs may be less demanding than previously thought, which could alleviate investor concerns. The valuation of Oracle’s stock is considered to be at a low point, providing potential for significant upside. Furthermore, strong enterprise checks indicate robust growth in Oracle’s cloud services and AI workloads, supporting the optimistic forecast for OCI growth and overall company performance.
In another report released yesterday, Wells Fargo also initiated coverage with a Buy rating on the stock with a $280.00 price target.