Shares of Oracle Corporation
Goldman Sachs On Oracle
Analyst Kash Rangan upgraded Oracle from Sell to Neutral, while raising the price target from $75 to $120.
The company's solid quarterly results and guidance alleviated concerns related to "mounting CapEx requirements to sustain growth in Gen2 OCI (while also diluting gross margin) and unabating market share losses in the Oracle's core database business," Rangan said in the upgrade note.
"With solid performance in SaaS/ERP (back-office +24% CC), accelerating growth in IaaS, and a longer-term opportunity to convert on-premise database customers to the cloud, we are increasingly constructive on Oracle's ability to deliver on its F26 revenue target of $65bn (w/ 45% op. margins)," he further stated.
Guggenheim Securities On Oracle
Analyst John DiFucci maintained a Buy rating, while raising the price target from $120 to $150.
Oracle's quarterly results "exceeded expectations across the board," with acceleration across both major businesses, SaaS and PaaS/IaaS, DiFucci said.
"Oracle almost hit its organic Cloud revenue goal of 30% for the year with a big ramp in F4Q23, which we believe is just the beginning, as the company guided to similar organic cloud growth in FY24," he added.
Morgan Stanley On Oracle
Analyst Keith Weiss reiterated an Equal-Weight rating, while raising the price target from $90 to $105.
"Q4 rev and EPS meet expects despite organic FY24 cloud growth coming in just shy of 30% cc - but with OCI accelerating and Fusion maintaining growth," Weiss wrote in a note.
AI has become a larger part of Oracle's story, with $2 billion of signed AI contracts over the past two quarters, he added.
Piper Sandler On Oracle
Analyst Brent Bracelin reaffirmed an Overweight rating and price target of $130.
"The $99M top-line beat during fiscal Q4 on accelerating Cloud Infrastructure growth of 77% coupled with the $0.09 EPS beat on improving operating margin of 44.5% (vs. 41.8% last quarter) reinforces our bullish view that ORCL is entering a new era of improving growth and profitability metrics," Bracelin said.
"The Oracle Cloud segment (ex-Cerner) grew by more than 30% y/y to $15B+ annualized run-rate exiting Q4 representing 28% of sales (vs. 10% in FY17)," he added.
William Blair On Oracle
Analyst Sebastien Naji maintained a Market Perform rating on the stock.
"Oracle is benefiting from the rising generative AI tide, which is driving significant demand for OCI (the company received $2 billion in commitments from AI-focused vendors)," Naji wrote.
"Though Oracle's performance in cloud remains laudable, we continue to have concerns about its overall positioning in the database market (where we continue to hear about market share losses) as well as intense competition within AI," the analyst further stated.
