Mark Moerdler, an analyst at Bernstein SocGen Group, reiterated a 'Buy' rating for Oracle Corp. (NYSE: ORCL) and set a 12-month price target of $325, according to a note sent to clients on Wednesday.
At the time of the note, Oracle stock was trading at $143.95, implying potential upside of 125.77% over the next year. Moerdler's bullish thesis centers on the company's expected continued gains from the artificial intelligence sector through its Oracle Cloud Infrastructure (OCI) services.
For Oracle's first quarter of fiscal year 2027, the company projects that total cloud revenue, including infrastructure as a service (IaaS) and software as a service (SaaS), will grow 57% to 63% year-over-year.
Analyst consensus: Moerdler noted that "the value being created is substantial and not included in the valuation." Among 32 Wall Street analysts surveyed by TipRanks over the past three months, all issued a 'Strong Buy' rating, with an average 12-month price target of $254.57, representing potential upside of 76.85%. The highest analyst target stands at $400, while the lowest is $145.
Recent performance: Oracle's market capitalization fell by $146.4 billion through September 2, hovering at $407.1 billion. Year-to-date, the stock has declined 26.45% after reaching an all-time high of slightly above $345.
