Oracle (ORCL) PT Raised to $415 at Citi

Citi analyst Tyler Radke raised the price target on Oracle (NYSE: ORCL) to $415.00 (from $395.00) while maintaining a Buy rating.

The analyst comments "After a historic Q1, ORCL shares have traded off 10%+ from recent highs on concerns around quality of backlog, profitability concerns following a slew of press reports and broader AI bubble/circularity concerns. We view the pullback as a buying opportunity as we see a broadening set of customers powering OCI growth, and we expect management to provide incremental clarity on CapEx, financing needs and long-term profitability around the ramping AI projects. We recently significantly boosted CapEx and ahead of analyst day we revisit key assumption in our model following conversations with the company and industry checks. While consensus is under-modeling GM% headwinds, we believe they are not appreciating opex efficiencies. We project a FY26-30 EPS CAGR of 30%+ on back of continued opex efficiency and GPU gross margins scaling to 35-40% by FY29-30. We increase our TP to $415 (based off ~37x FY28 EPS of $11.51)."

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