Oracle Corp. (NYSE:ORCL) shares are hovering around the flatline Tuesday even as two analysts reiterated bullish ratings. Here’s what you should know.
- Oracle stock is trading near recent lows. What’s the outlook for ORCL shares?
Bernstein Calls Oracle a Long-Term AI Winner
Bernstein SocGen Group analyst Mark Moerdler reiterated an Outperform rating and a $325 price target. Moerdler wrote that “Oracle has been the most controversial stock in our coverage.” Investors have phoned in about it more than any other name, Moerdler added, as they try to judge how likely, and how near, its payoff over the long run is.
Bernstein reran its ten-year forecast using what management has shared and projected lately. The result, Moerdler said, is that Oracle’s economics look better than analysts previously assumed and that management is building something much more valuable for shareholders.
Moerdler named two possible catalysts. An IPO by OpenAI might show whether OpenAI and its AI peers can afford the computing they signed up for. The other is Oracle returning to positive free cash flow in the second half of fiscal 2028.
With investors increasingly worried that software firms will lose ground to AI, Moerdler sees Oracle’s data center arm and its database business as winners, so the stock should rank among the first picks.
KeyBanc Flags Election Risk for Oracle
KeyBanc analyst Jackson Ader maintained an Overweight rating and a $300 price target. On balance, last Tuesday’s elections hurt Oracle’s OCI buildout, Ader wrote. Rather than rehash the national picture, the note examines races near each of Oracle’s five large U.S. campuses, where Ader sees outcomes that could matter more.
One example is a commissioner newly elected in Doña Ana County, New Mexico, who in 2021 voted against letting local governments impose environmental rules tougher than federal ones.
Taken together, the two notes keep bullish ratings, with price targets of $325 and $300. Bernstein points to long-term gains from AI and cash flow, while KeyBanc flags nearer-term risks at the local level.
ORCL Shares Are Slipping
ORCL Price Action: Oracle shares were down 0.09% at $119.68 at the time of publication on Tuesday, according to Benzinga Pro.
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