Morgan Stanley raises Oracle Corporation price target to $246 from $175

Morgan Stanley raises Oracle Corporation price target to $246 from $175

Investment bank Morgan Stanley has updated its price target for Oracle Corporation (NYSE: ORCL), increasing it from $175 to $246. The stock is currently trading at $232.80, reflecting a 66% gain over the past year. Oracle maintains a strong market position with a $654 billion market capitalization.

The revised target is based on Morgan Stanley's analysis, which suggests Oracle could revise its fiscal year 2029 revenue target to approximately $125 billion at the company's upcoming Analyst Day. However, the investment bank notes that building gross margin pressure could lead to earnings per share of $11.50 to $12.00. Despite this potential for higher revenue, Morgan Stanley believes that the stock's current valuation already reflects the potential upside, leading to an Equalweight rating.

In addition to Morgan Stanley's update, several other firms have also raised their price targets for Oracle. Global Equities Research has increased its target to $400, maintaining an Overweight rating, citing Oracle's strong position in Context Engineering as a major AI catalyst. Mizuho has raised its target to $300, emphasizing Oracle's role as a "structural AI winner" and expressing confidence in its growth trajectory.

Financing news includes a $38 billion debt package led by JPMorgan Chase and Mitsubishi UFJ Financial Group to fund Oracle's data centers in Wisconsin and Texas, with a $23 billion loan already committed for the Texas campus. Additionally, NYC Health + Hospitals is expanding its use of Oracle Fusion Cloud Applications to modernize its operations, indicating Oracle's growing influence in the healthcare sector. Citizens JMP has reiterated a Market Outperform rating with a $315 price target, supported by positive feedback from industry executives and former employees.

These developments highlight Oracle's ongoing strategic moves and market positioning, contributing to the positive outlook from various analysts.

References:
[1] https://www.investing.com/news/analyst-ratings/morgan-stanley-raises-oracle-stock-price-target-to-246-from-175-93CH-4228743