Stephens upgrades Oracle to Overweight and raises price target to $213
Stephens upgraded Oracle to an Overweight rating, increasing its price target from $185 to $213. The firm highlighted Oracle's reduced cloud infrastructure funding needs, now capped at $20 billion, and its guidance for positive free cash flow in the second half of 2028 with more than $30 billion expected in FY 2029. The upgrade follows Oracle's investor day where management clarified its financing strategy. Stephens sees a roughly 63% upside from the current share price.
Why it matters
The higher rating and price target suggest a sizable upside for investors, while the projected free cash flow improves Oracle's cash generation outlook. Stephens' view implies the stock could trade well above its current level.
Key facts
- 1Stephens raised Oracle's price target to $213, up from $185. investing.com
- 2Oracle said incremental funding for its cloud infrastructure is capped at $20 billion. investing.com
- 3Oracle projected positive free cash flow in the second half of 2028. investing.com
- 4Oracle expects more than $30 billion of free cash flow for fiscal year 2029. investing.com
Open questions
- Material 1 lists Oracle's closing price as $130.67, while material 4 lists it as $130.68.
Summary written by AlphAI AI Desk from 4 of 4 sources. Not investment advice. Figures are as stated by the linked sources.