Forecasted OCI Growth and AI Acceleration Drive Oracle Stock Upgrade, Analyst Predicts Market Share Doubling by 2025

Wolfe Research analyst Alex Zukin upgraded Oracle Corp ORCL to Outperform from Peer Perform at a price target of $130.

The analyst is bullish on Oracle's strong top-line and bottom-line growth, led by increased Oracle Cloud Infrastructure (OCI) adoption and acceleration in AI.

Zukin expects Cloud Revenues' OCI to grow 58% to $7.1 billion in FY24, 53% to $10.9 billion in FY25, and 46% to $15.9 billion in FY26.

The analyst also projects Oracle's market share to double to 5% from 2% by 2025, aided by architectural cost benefits, value-accretive collaborations, and an early mover advantage in Generative AI.

Zukin sees potential for Oracle's strong Q4 FY23 results and above-consensus Q1 FY24 guidance. 

Consequently, the analyst raised the estimate for Non-GAAP revenues to $13.83 billion (from $13.74 billion) in Q4 FY23, $49.95 billion (from $49.89 billion) in FY23, and $53.33 billion (from $52.74 billion) in FY24.

Apart from this, Evercore ISI Group increased Oracle's price target to $110 from $95 at an In-Line rating.

Also Read: Oracle Stock Is Moving Higher Monday: What's Going On?

Price Action: ORCL shares are trading higher by 6.20% at $116.85 on the last check Monday.