Analysts raise long-term forecasts for Oracle amid $100 billion capex guidance and strong data center execution.
Scotiabank increased its price target for Oracle (ORCL) to $290 from $215, maintaining a Sector Outperform rating. The adjustment follows a 71% rally in ORCL shares over the past three months and expectations of $100 billion in FY27 capital expenditures for cloud infrastructure growth.
Analysts cited management comments indicating data center development is “on schedule or ahead of expectations,” though they refrained from raising FY27 Oracle Cloud Infrastructure revenue targets due to contract uncertainties. The firm also noted $800M in annualized opex savings from an 11k headcount reduction, offsetting gross margin pressure.
ORCL shares are expected to remain volatile, but analysts view the long-term risk-reward as favorable for patient investors.