Bernstein raised its Oracle (NYSE: ORCL) stock price target from $319 to $325 on Thursday, June 11, and reiterated its ‘Outperform’ on the software company following its earnings report results.
The brokerage argued that Oracle demonstrated continued progress during the previous quarter, steadily making its way toward fiscal 2030 growth targets.
Furthermore, Bernstein said there are major concerns going forward, even though ORCL shares fell roughly 10% following the report, extending their one-week decline to nearly 15% as investors focused on management’s aggressive spending plans.
Bernstein raises Oracle stock price target
While Oracle’s cloud revenue came in slightly below expectations, Bernstein noted that Oracle Cloud Infrastructure (OCI) outperformed forecasts and offset a modest shortfall in software-as-a-service (SaaS) revenue.
Now, Oracle projects fiscal 2027 capital expenditures between $90 billion and $95 billion, with management indicating that $20–$25 billion would be funded through customer prepayments and supplier payment arrangements. The company also disclosed plans to raise an additional $20 billion in capital, although it is not known whether the funds will come through debt issuance or equity financing.
Furthermore, management said fiscal 2028 could be the peak year for capital expenditures, going off current revenue forecasts, with funding requirements likely declining significantly after that. Bernstein itself said that Oracle’s need for additional capital beyond the planned raise will be limited, which further reinforced its confidence in the company’s long-term growth strategy.
Barclays upgrades Oracle share price target on AI demand
Barclays has also raised its price target on Oracle from $240 to $250 and reiterated its ‘Overweight’ rating, citing strong demand for artificial intelligence (AI) infrastructure and a favorable capital spending outlook.
The company highlighted a significant beat in Oracle’s remaining performance obligations (RPO), widely considered an important indicator of future revenue, suggesting AI-related demand continues to outpace available supply. While cloud applications and software revenue came in slightly below Wall Street expectations, Barclays, like Bernstein, says the broader growth trajectory remains sound.
The firm also pointed to Oracle’s latest customer agreements, many of which include ‘bring-your-own-chip’ arrangements and customer prepayments. This, the analysts believe, helps reduce the company’s funding requirements for expansion.
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