Citizens Reiterates Market Outperform Rating on Oracle (ORCL); Cites AI Momentum, Growth Outlook

Citizens analyst Patrick Walravens reiterated a Market Outperform rating and $342.00 price target on Oracle (NYSE: ORCL).

The analyst commented, "Overall, we continue to like this stock for a number of reasons including: 1) Oracle has become the "go-to place" for AI workloads from customers including OpenAI, xAI, Meta (META, MO, $900 PT, Boone), Nvidia (NVDA, NC), and AMD (AMD, NC), and with RPO of over half a trillion is poised to drive a very strong acceleration in growth over the next few years; 2) AI workloads are not just about training, which bodes well for Oracle whose "flexible" and "extremely efficient data center designs... translates into more power available… [at] lower costs"; 3) beyond infrastructure, Oracle is "constantly rewriting [its] applications" and now has 600 AI agents live across its portfolio with over 2,400 customers using those agents; 4) CapEx is rising significantly, but as deals are "contracted and [Oracle has] to build a data center from scratch," Oracle does not “pay for land, data center, and power until it's actually delivered," resulting in lower upfront costs and better time to value; and 5) we continue to like the long-term leadership of Chairman and CTO Larry Ellison, who founded this company in 1977 (we initiated coverage in 2002) and was listed as the second-wealthiest person in the world on the Forbes Real-Time Billionaires List, Safra Catz as Executive Vice Chair, and co-CEOs Clay Magouyrk and Mike Sicilia."

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 $313.00 yesterday.

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