Oracle (ORCL) PT Lowered to $275 at Stifel

Stifel analyst Brad Reback lowered the price target on Oracle (NYSE: ORCL) to $275.00 (from $350.00) while maintaining a Buy rating.

The analyst comments "Oracle traded off ~10% after hours post a lackluster print as modestly better RPO growth (+15% Q/Q) was more than offset by much higher than anticipated capex ($15B increase in FY26 guide...now at $50B), IaaS revenue (~$4.1B) that was just in line with expectations, EPS, excluding the Ampere benefit, that appears to be ~10-15 cents below guidance, and continued uncertainty around exactly how Oracle is going to fund its data center build-out requirements. That said, management reiterated its desire to remain an investment grade credit and stated it has numerous ways to fund its growth, including customers bringing their own chips. Looking forward, we expect current capex investments to support accelerating OCI growth in the coming quarters, given Oracle's expanding and increasingly diverse IaaS customer base, which should result in better EPS growth rates in FY27. Due to the above factors, we lower our target price to $275, which is based on 28x CY27 EPS of $9.78."

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