Oracle (ORCL) PT Raised to $142 at CFRA

CFRA analyst Angelo Zino raised the price target on Oracle (NYSE: ORCL) to $142.00 (from $130.00) while maintaining a Hold rating.

The analyst comments "We increase our 12-month target to $142 from $130, on a higher revised P/E of 21x our CY 25 EPS estimate of $6.75, above historical but below peers. We raise our FY 24 (May) EPS to $5.59 from $5.54 and keep FY 25 at $6.29. ORCL posts Feb-Q EPS of $1.41 vs. $1.22, beating the $1.38 consensus. Sales rose 7%, near expectations, led by 12% growth from cloud services and license support (75% of sales), which more than offset legacy declines. We positively view stabilization in cloud services growth (+25%) after recent deceleration, with Infrastructure-as-a-Service (IaaS) rising 49% and cloud applications (SaaS) up 14%. Despite ORCL's leveraged financial position (net debt of $78B) and need to boost capex ($10B seen in FY 25 from $7.5B projected in FY 24), we think growth opportunities across cloud services are improving thanks to rising GenAI adoption across the globe, providing better visibility ahead. ORCL's pipeline is growing ahead of revenue (RPOs +29% to $80B) and will help aid growth as GPU supply improves."

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