UBS Upgrades Oracle (ORCL) to Buy, 'upcoming CloudWorld event on September 18 as a potential OCI catalyst'

UBS analyst Karl Keirstead upgraded Oracle (NYSE: ORCL) from Neutral to Buy with a price target of $140.00 (from $120.00).

The analyst comments "Oracle shares are +42% YTD, and we are cognizant that they are already viewed as an AI winner by a large swath of investors. That said, in our view, the AI story still has plenty of time/room to play out, given: a) we may be just one quarter into AI start-ups ramping their use of OCI, and we don’t think that Cohere has kicked-off its ramp yet; b) we are sitting in front of what could be a constructive CloudWorld event and Investor day; c) while the FCF multiple looks full, the P/E multiple of 20x does not on our estimates; and d) only a minority (~40%) of sell-side analysts even rate Oracle shares a Buy. With the move up in IaaS growth, we now model FY24 Revs of 9.3% C/C (from 8.8%) and view the upcoming CloudWorld event on September 18 as a potential OCI catalyst."

For an analyst ratings summary and ratings history on Oracle click here. For more ratings news on Oracle click here.

Shares of Oracle closed at $116.06 yesterday.

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