Shares of Oracle (ORCL) are trading higher today after KeyBanc, Bank of America (BofA), and Stifel raised their price targets. This comes after the tech company laid out an ambitious growth plan at its CloudWorld conference, where it predicted strong revenue and earnings per share (EPS) growth through 2029. Indeed, Oracle expects to hit $104B in annual revenue by then, with EPS growing by more than 20%.
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KeyBanc analyst Jackson Ader highlighted that Oracle’s goal of 20%+ EPS growth from 2026 to 2029 means that profit margins will be strong and the firm will not need to see a major increase in expenses. As a result, KeyBanc kept its Overweight rating and raised the price target to $190 from $165. Meanwhile, Bank of America Securities increased its price target from $155 to $195 and raised revenue estimates for 2026 and 2027 due to Oracle’s progress in cloud services and AI-enabled applications.
However, Stifel was a bit more cautious and only raised its price target from $135 to $155 per share. In fact, analyst Brad Reback expressed some doubts about the firm’s ability to maintain 16% growth over the long run due to the consumption nature of its cloud revenue model. It’s worth noting that Oracle does not charge a fixed fee but rather bills customers based on their usage levels, which makes growth more unpredictable and vulnerable to spending fluctuations.
It’s worth noting that Reback is a five-star analyst who has so far enjoyed a 71% success rate on ORCL stock, with an average return of 16.6% per rating.
Is Oracle a Buy, Hold, or Sell?
Overall, analysts have a Moderate Buy consensus rating on Oracle stock based on 15 Buys, 13 Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 46% rally in its share price over the past year, the average ORCL price target of $163.88 per share implies 0.42% upside potential.
