Oracle Stock Sets New Record High After Jefferies Lifts Price Target to $270

Oracle shares are on pace to hit a record-high closing price Tuesday, up 40% so far in 2025. Jefferies raised its price target to $270, citing recent cloud deals, including one expected to generate $30 billion in revenue. Analysts are bullish on the cloud computing giant, with Jefferies and Stifel raising their targets. Oracle's strong cloud growth and partnerships, such as with OpenAI, are driving the stock's surge.

Oracle (NYSE: ORCL) shares are on pace to hit a record-high closing price on Tuesday, up 40% year-to-date, driven by a bullish outlook from Jefferies and recent mega cloud deals. Jefferies raised its price target to $270, citing significant cloud deals that are accelerating Oracle's growth. The brokerage firm highlighted a landmark contract expected to generate more than $30 billion in annual revenue starting in fiscal 2028 [1].

Analysts at Jefferies, led by Brent Thill, noted that these deals represent a pivotal moment in Oracle's evolution as a hyperscaler. The scale of these deals suggests meaningful upside to fiscal year 2028 Infrastructure as a Service (IaaS) revenue and total revenue estimates, de-risking Oracle's $104B fiscal year 2029 revenue target. Thill and his team said that these developments mark a significant inflection point in Oracle's cloud strategy, potentially reshaping key investor debates around the durability of backlog growth, the timing of revenue inflection, and the company's ability to monetize AI demand at scale [1].

Oracle's recent deals, including a series of transformative cloud services agreements, have bolstered confidence in the company's over 100% Remaining Performance Obligation (RPO) growth guide for fiscal 2026. The analysts added that these deals could account for over 65% of projected IaaS revenue and nearly one-third of total revenue in fiscal 2028 [1].

Stifel analysts also raised their price target for Oracle stock to $250 per share from $180, pointing to Oracle's strong cloud growth. Jefferies' new target implies roughly 13% upside, making it the most bullish target among firms tracked by Visible Alpha [2].

The deal with OpenAI, a $30 billion-a-year cloud expansion, is a significant component of Oracle's cloud growth. OpenAI is set to rent 4.5GW of data center capacity from Oracle, with plans to establish multiple data centers across the U.S., including potential sites in Texas, Michigan, and Wisconsin. This deal underscores Oracle's pivotal role in scaling AI infrastructure and highlights the company's strategic partnerships in the AI sector [3].

The surge in Oracle's stock price is a reflection of the company's strong cloud growth and strategic partnerships. As Oracle continues to execute on its cloud strategy, investors can expect further upward revisions to its long-term financial framework at its upcoming CloudWorld analyst day [1].

References:

[1] https://seekingalpha.com/news/4465842-oracle-sees-price-target-raised-at-jefferies-amid-mega-deals-accelerating-growth

[2] https://www.investopedia.com/oracle-stock-pushes-toward-record-high-as-jefferies-lifts-price-target-11768096

[3] https://opentools.ai/news/openai-teams-up-with-oracle-for-a-dollar30-billion-cloud-expansion