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Oracle’s stock price target raised to $145 by TD Cowen on strong cloud growth



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On Tuesday, TD Cowen maintained its positive stance on Oracle Corporation (NYSE:ORCL), increasing the software giant’s price target to $145 from the previous $130 while reiterating an Outperform rating.

The adjustment follows Oracle’s third-quarter earnings report, which reflected a total revenue growth of 7% on a constant currency basis, aligning with the company’s guidance of 6-8%. The report highlighted a particular strength in Oracle’s organic Cloud growth, which reached 26% on a constant currency basis, albeit at the lower end of the projected 26-28% range.

Oracle’s Cloud Infrastructure (OCI) growth exceeded market apprehensions, contributing to a more than 10% rise in the company’s shares after hours. The robust performance was further underscored by a significant increase in Remaining Performance Obligations (RPO), a measure of future revenue expected from customer contracts.

Management’s commentary during the earnings call hinted that the financial targets set for fiscal year 2026 might be understated. This suggestion of potential conservative forecasts aligns with TD Cowen’s assessment that Oracle is on a trajectory for accelerated growth over the next two-plus years.

The reaffirmed Outperform rating by TD Cowen indicates a confidence in Oracle’s market position and its ability to sustain growth momentum, particularly in its cloud services. The raised price target of $145 reflects this optimistic outlook and the firm’s belief in the company’s future performance.

Oracle’s recent financial achievements and the subsequent analyst endorsement underscore the company’s success in expanding its cloud offerings. The market’s positive reaction to Oracle’s quarterly outcomes and the revised price target from TD Cowen spotlight the company’s ongoing transformation into a cloud-centric enterprise.

InvestingPro Insights

In the wake of TD Cowen’s positive outlook on Oracle Corporation (NYSE:ORCL), it’s worth noting some key metrics and tips from InvestingPro that could further inform investors about the company’s standing. Oracle’s market capitalization stands at a robust $313.73 billion, reflecting the scale and stability of the enterprise. The company’s P/E ratio is currently at 30.63, which might be considered high relative to near-term earnings growth, but this is often the case with companies that have stable earnings and are considered to be prominent players in their industry, like Oracle in the software sector.

An InvestingPro Tip that might interest investors is Oracle’s track record of raising its dividend for 10 consecutive years, which is a testament to the company’s financial health and commitment to shareholder returns. Additionally, Oracle’s stock tends to trade with low price volatility, providing a level of predictability and less risk for investors who prefer stability in their portfolio.

For those interested in deeper analytics and more tips like these, InvestingPro offers additional insights. For example, Oracle has maintained dividend payments for 16 consecutive years, and analysts predict the company will be profitable this year, having already been profitable over the last twelve months. With 10 more InvestingPro Tips available, investors can gain a comprehensive understanding of Oracle’s financial health and market position.

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