Oracle Upgraded to Outperform by Oppenheimer Amid AI-Driven Growth Prospects
Oppenheimer upgraded Oracle (ORCL) to Outperform with a $185 price target, citing favorable risk/reward dynamics as the stock trades nearly 55% below its September peak. Analyst Brian Schwartz projects EPS could double or triple by fiscal 2030, fueled by OpenAI's expansion to 800M+ weekly users and Oracle's planned $45B–$50B bond issuance to fund cloud infrastructure.
The upgrade follows Oracle's valuation compression despite securing $300B in customer contract obligations, largely tied to AI workloads. While counterparty risk concerns linger around OpenAI's $100B funding round, Oracle's capex roadmap positions it as a key beneficiary of enterprise AI adoption.