Monness upgrades Oracle to Neutral on generative AI benefits

Monness Crespi upgraded Oracle (ORCL) to Neutral from Sell without a price target ahead of the fiscal Q3 report next week. Oracle “represents a high-quality company” with the opportunity to participate in a cloud transformation and benefit from the generative artificial intelligence trend, the analyst tells investors in a research note. However, the firm believes the stock’s valuation “is stretched,” Oracle’s capex spending is unsustainable, its competition is fierce, and the macro environment is “fragile.”