Oracle Stock (ORCL) Primed for Major Gains According to Citi and Evercore Analysis

Wall Street heavyweights Citi and Evercore are betting big on Oracle's upside potential—because nothing says 'sure thing' like banking institutions agreeing on something for once.

The Analyst Consensus

Both firms see ORCL positioned for significant growth, citing the company's cloud infrastructure expansion and enterprise software dominance. Citi maintains its bullish rating while Evercore echoes the optimistic outlook—apparently when two major analysts concur, even traditional finance can occasionally get something right.

Market Momentum Building

Oracle's recent earnings beat and cloud revenue surge have institutional investors taking notice. The stock's technical setup suggests breakout potential, though let's be honest—when have Wall Street predictions ever been wrong before?

As legacy institutions finally wake up to tech-driven growth stories, Oracle represents that rare breed of established tech play that even your grandfather's broker might understand. Just don't mention it's not a cryptocurrency—some truths are better left unspoken in modern finance circles.

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Yesterday, analysts at Baird and Phillip Securities initiated coverage of Oracle stock with a Buy rating. Interestingly, Baird analyst Robert Oliver called Oracle the “AI juggernaut for the information age.” These Buy ratings and price target upgrades come despite a recent report by The Information, which raised concerns about Oracle’s AI cloud margins.

Citi Analyst Is Bullish on Oracle Stock

Radke noted that following a “historic Q1,” ORCL shares have pulled back more than 10% from recent highs due to concerns about the quality of backlog, profitability concerns stemming from a slew of press reports, and broader worries about a potential AI bubble and circularity. The 4-star analyst views the pullback in ORCL stock as a buying opportunity, as he sees a broadening set of customers fueling Oracle Cloud Infrastructure (OCI) growth.

Also, Radke expects management to provide greater clarity on capital expenditure, financing needs, and long-term profitability related to the ramping AI projects. The analyst recently boosted his capex estimate significantly. Ahead of Oracle’s analyst day, Radke revisited key assumptions in his model following conversations with the company and industry checks.

Radke contended that while the Street’s consensus is under-modeling gross margin headwinds, he believes that they are not appreciating efficiencies in operating expenses. The analyst expects a compound annual growth rate (CAGR) of 30% in Oracle’s FY26 to FY30 earnings per share (EPS), driven by continued operating expenses efficiency and the expectation of graphics processing units (GPU) gross margins expanding to the range of 35% to 40% in the FY29 to FY30 period.

Evercore Sees Upside to Oracle’s Financial Targets

Meanwhile, Evercore’s Materne refreshed his model heading into Oracle AI World and the financial analyst day. The 5-star analyst expects Oracle to update its long-term revenue and EPS guidance.

Materne added that the FY30 OCI revenue “tease” of $144 billion during the Fiscal Q1 earnings call reinforces his confidence that the company will issue a refreshed revenue forecast for Fiscal 2030. He expects Oracle to deliver some upside to its FY30 revenue forecast as $200 billion “seems reasonable” and confirm the annualized EPS growth forecast of about 20% for FY25 to FY30.

Is ORCL Stock a Buy, Sell, or Hold?

Currently, Wall Street has a Moderate Buy consensus rating on Oracle stock based on 28 Buys, eight Holds, and one Sell recommendation. The average ORCL stock price target of $343.44 indicates 13.6% upside potential from current levels.