Bank of America aggressively revamps Oracle stock price target
Bank of America Securities raised its Oracle (ORCL) price target to $240 from $200 and kept a buy rating ahead of Oracle’s Q4 fiscal 2026 earnings on June 10, according to a BofA note. The target is based on a 26.5x calendar 2027 P/E, citing software-sector valuation strength and about $50 billion in debt/equity raises. Oracle reported Q3 revenue of $17.2B (+22% YoY) and remaining performance obligations (RPO) of $553B (+325% YoY), and raised its FY27 revenue target to $90B.
Street expectations are being reset upward via a higher PT and a valuation-multiple expansion thesis tied to OCI growth and reduced funding concerns.
Bank of America raised Oracle’s price target to $240 from $200, citing 26.5x CY2027 P/E and robust cloud/database demand ahead of Q4 earnings.
Near-term upside bias into the Q4 fiscal 2026 earnings print if results confirm demand, RPO conversion, and capex/financing assumptions; downside risk if guidance or RPO-to-revenue timing disappoints.
Background
The piece frames Oracle’s shift from traditional enterprise software to cloud/AI infrastructure, highlighting a large RPO jump and a higher FY27 revenue target.
Why it matters
BofA’s PT raise is anchored to (1) sector multiple expansion, (2) reduced funding concerns after debt/equity raises, and (3) continued robust demand across OCI and database workloads—focusing traders on earnings confirmation of buildout pace, revenue recognition timing, and capex/financing needs.
Market relevance
Valuation and expectations are being pushed higher into the June 10 earnings print, with traders likely to focus on RPO conversion, OCI growth durability, and capex/financing execution.
Market effects
Supports the broader software/enterprise cloud valuation bid via read-across that peers’ multiples can expand when RPO and cloud growth remain strong.
Primarily US large-cap software sentiment; could lift US cloud infrastructure complex on earnings positioning.
Reinforces global enterprise cloud/AI infrastructure demand narrative, though the catalyst is US-listed Oracle earnings/analyst framing.
Alternative perspectives
The $553B RPO surge may not translate into near-term revenue at the same pace if revenue recognition timing lags or contract terms shift.
Capex intensity and financing assumptions are central; any change in data center buildout pace, customer prepayment dynamics, or margin impact from AI-driven development restructuring could offset the multiple expansion.
Key entities
- companyOracle
Subject of the article; BofA raised its price target and the article details RPO, FY27 revenue target, and Q4 guidance setup.
- financial_institutionBank of America (BofA) Securities
Analyst source that raised Oracle’s price target to $240 from $200 with a buy rating.
