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Arete upgrades Oracle to Buy amid supply constraints

Arete analyst Adam Shepherd upgraded Oracle (ORCL) to Buy from Neutral with a $255 price target The firm says supply constraints are helpful to the economics of graphics processing units. In addition, Oracle’s cost actions “should, at the very least, underpin” its earnings targets, the analyst tells investors in a research note. Arete believes the company’s momentum in generative AI suggests consensus cloud estimates are too low.

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