Oracle shares have swung over the past year, rising from below $160 to above $300 before pulling back to around $186. The stock trades at $186.61 and has a 12-month price target of $244.17, implying about 30.85% upside, with a buy recommendation and high confidence. After a December quarter with revenue missing and a sharp share decline, a March quarter showed revenue of $17.19 billion, EPS of $1.79, and 84% growth in Cloud Infrastructure. Remaining performance obligations increased to $553 billion, and the FY27 revenue target was raised to $90 billion. The bull case emphasizes booked AI demand, multicloud database growth, and analyst consensus targets.
"The analyst tally shows 7 Strong Buy, 28 Buy, 8 Hold, 1 Sell with a consensus target of $242.74. Our internal bull case projects $350.08 within twelve months, an 87.6% return if capacity delivery accelerates and AI demand outpaces supply. The bear case centers on capital intensity. Trailing free cash flow is negative $24.74"
#oracle-cloud-infrastructure #ai-backlog #stock-price-target #cloud-revenue-growth #free-cash-flow-risk
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