On Friday, TD Cowen expressed confidence in Oracle Corporation (NYSE:ORCL) shares, raising its price target on the stock to $210 from the previous $190. The firm maintained its Buy rating on the technology giant, joining a broader analyst consensus that remains bullish with an average rating of 1.94 (where 1 is Strong Buy). According to InvestingPro data, analyst targets currently range from $140 to $220.
The update comes ahead of Oracle's second-quarter earnings report, scheduled for December 9. The analyst anticipates the company will achieve 8% constant currency (cc) growth, aligning with Wall Street expectations, and another robust quarter of Recurring Profit Obligations (RPO) with over 50% cc growth, propelled by Oracle Cloud Infrastructure (OCI).
InvestingPro analysis indicates Oracle is currently trading above its Fair Value, with a P/E ratio of 46.61 and strong financial health metrics, scoring 'GOOD' on InvestingPro's comprehensive assessment.
Despite potential foreign exchange headwinds that could impact estimates, the analyst expects Oracle to reaffirm its forecast for strong cc growth acceleration in the second half of the fiscal year. The positive outlook is supported by bullish sentiment on demand trends and Oracle's growth acceleration framework.
Oracle's shares have seen a significant surge, climbing 78.81% year-to-date and trading near its 52-week high of $196.04. This substantial increase sets a high benchmark for performance, yet the firm's outlook remains positive on the company's market position and future growth prospects.
With a market capitalization of $518.22 billion and projected revenue growth of 10% for FY2025, Oracle continues to demonstrate its strength as a prominent player in the software industry.
The price target adjustment reflects a belief in Oracle's continued momentum and its ability to sustain a high level of growth, especially in its cloud services and license support segments. Oracle's forthcoming earnings report will be closely watched for confirmation of these growth trends and the company's ability to meet the high expectations set by its year-to-date performance.
In other recent news, Oracle Corporation has made significant strides in its operations and financial performance. The company's second-quarter fiscal year 2025 earnings report is anticipated to show a year-over-year growth of 10%, with non-GAAP earnings per share potentially reaching around $1.50. Oracle has also issued $6.25 billion in senior notes for debt repayment and future acquisitions.
In terms of partnerships, Oracle expanded its collaboration with NTT DATA Japan, enhancing cloud service offerings using Oracle Alloy. Additionally, the U.S. Army is migrating its Integrated Personnel and Pay System-Army to the Oracle U.S. Defense Cloud, expected to result in cost savings and improved HR and payroll efficiency.
Various analyst firms have updated their assessments of Oracle. Guggenheim maintained a positive outlook on Oracle, raising its price target to $220 and keeping a Buy rating. HSBC and Erste Group also raised their price targets based on the strong performance of Oracle Cloud Infrastructure.
However, RBC Capital maintained a "Sector Perform" rating, expressing concerns about Oracle's cloud infrastructure segment's ability to compete effectively with industry giants.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.