Feb. 25 at 1:50 PM
Oracle was upgraded to Outperform with a
$185 target after a pullback that cut valuation multiples in half since September. Oppenheimer argues the 25% drop in 2026 creates a better entry point despite risks tied to heavy AI and cloud infrastructure spending.
Analyst Brian Schwartz expects earnings growth to offset revenue pressures, projecting EPS could double by FY30 under conservative assumptions. He cited reduced counterparty and execution risks following major capital initiatives and contracts with clients like OpenAI and TikTok.
While acknowledging concerns about margins, balance-sheet pressure, and AI investment uncertainty, Oppenheimer believes downside risk is increasingly limited at current levels. The stock remains a “show-me” story requiring consistent execution to regain investor confidence.
$ORCL