Shares of Oracle (ORCL) are in the red today after the tech giant’s Q2 earnings results and outlook fell slightly short of expectations. Nevertheless, Wall Street remains optimistic due to the company’s ongoing cloud growth, especially in AI infrastructure. In fact, analysts pointed to Oracle’s strong growth in remaining performance obligations (RPO) and its position to benefit from AI-driven cloud demand, with customers like Meta (META), xAI, and Nvidia (NVDA) using its infrastructure.
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Piper Sandler and Mizuho analysts raised their price targets to $210 due to Oracle’s expanding cloud momentum and AI opportunities. Analysts emphasized Oracle’s broad product portfolio, multi-cloud partnerships, and ability to capitalize on the booming AI demand as growth catalysts. As a result, Mizuho viewed the share dip as a buying opportunity, while KeyBanc predicted that cloud and software-as-a-service growth would accelerate into 2025.
Some Analysts Remain Cautious
However, Morgan Stanley remained cautious due to booking declines and rising capital expenditures and suggested that shares might stay range-bound until momentum picks up. Still, the firm, led by five-star analyst Keith Weiss, raised its price target from $145 to $175 per share while maintaining its Hold rating.
In addition, Citi analysts noted that they don’t yet see significant upside in Oracle’s total cloud revenue, which rose 24% year-over-year to $5.9 billion. Interestingly, though, Citi also kept its Neutral rating on the stock while increasing its price target to $194.
Is Oracle Stock a Buy, Sell, or Hold?
Overall, analysts have a Moderate Buy consensus rating on ORCL stock based on 18 Buys, eight Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 55% rally in its share price over the past year, the average ORCL price target of $187.39 per share implies 6% upside potential.
