Bernstein reiterates Outperform on Oracle, citing AI upside and upcoming cash‑flow inflection
Bernstein reaffirmed its Outperform rating on Oracle and set a $325 price target after updating its 10‑year model. Analyst Mark Moerdler said the model shows Oracle will need no extra funding and is about 18 months away from positive free cash flow, expected in the second half of fiscal 2028. He highlighted OpenAI’s pending IPO and Oracle’s AI‑focused data‑center business as key catalysts for the stock.
Why it matters
The rating and price‑target raise suggest a higher upside potential for investors, while the cash‑flow timeline indicates improved financial health. Bernstein’s view that Oracle will become cash‑flow positive without external funding may influence valuation and buying decisions.
Key facts
- 1Bernstein reiterated an Outperform rating on Oracle. investing.com
- 2Bernstein set a price target of $325 per share for Oracle. investing.com
- 3The firm expects Oracle will not need additional external funding. tradingpedia.com
- 4Oracle is projected to generate positive free cash flow in about 18 months. investing.com
- 5The positive free cash flow is expected by the second half of fiscal 2028. tradingpedia.com
- 6Key catalysts identified are OpenAI’s anticipated IPO and Oracle’s AI data‑center business. tradingpedia.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.