Analysts see 68% upside for Oracle stock as cloud infrastructure growth offsets high capital expenditure concerns.
Oracle Corporation (NYSE:ORCL) shares have fallen over 28% in the past month amid worries about elevated capital spending. Despite the decline, analysts maintain a bullish outlook, with a 12-month price target suggesting 68% potential upside from current levels.
Piper Sandler reiterated a Buy rating on ORCL with a $225 target on July 6, citing expectations that the company’s cloud infrastructure business will exceed fiscal 2027 revenue projections. The firm also anticipates higher capital expenditure will expand cloud capacity, driving future revenue growth. KeyBanc previously reaffirmed a Buy rating with a $300 target, highlighting Oracle’s strong position in AI hyperscaler markets and cost-cutting measures to offset gross margin pressures.
Oracle’s core segments include Cloud and License, Hardware, and Services, with cloud infrastructure emerging as a key growth driver.