'Oracle (ORCL) Delivering The Goods'; PT Raised to $400 at TD Cowen

TD Cowen analyst Derrick Wood raised the price target on Oracle (NYSE: ORCL) to $400.00 (from $375.00) while maintaining a Buy rating.

The analyst commented: "Delivering The Goods Across Revs, EPS, GMs, Fungibility; We attended ORCL's AI World conference & Analyst Day in Las Vegas. Guide was highly encouraging w/ ORCL raising its OCI forecast, providing FY30 rev targets >$25b above Street and EPS >$2.50 above Street. OCI AI margins of 30-40% also better than expected. ORCL has all the tools to thrive in the AI era (apps, data, infra + AI) and continued execution should drive shares higher.

Cloud World & Analyst Day were highly encouraging w/ new OCI targets & margin commentary better than expected. ORCL's platform is purpose built for AI & we expect customers will increasingly opt to consolidate spend onto its 4 key pillars of apps, data, infra and AI, driving a strong flywheel motion across the portfolio. ORCL noted willingness to use diverse financing options for its buildout, which should help keep leverage in check. We raised FY30 rev/EPS ests and believe further upside exists. Increase our PT to $400 (~27.5x FY30E EPS, discounted back 13%/yr for 3 yrs). Reiterate Buy."

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