JPMorgan Upgrades Oracle to Overweight, Sets $210 Target After 55% Selloff
JPMorgan upgraded Oracle to Overweight with a $210 target after shares plunged about 55% since mid-September, citing improved risk-reward and a growth-adjusted valuation discount to hyperscaler peers. Q3 revenue rose 22% in U.S. dollars and operating income topped estimates at $7.38 billion alongside 43.5% cloud and 243% AI infrastructure growth.
1. JPMorgan Upgrade and Price Target
JPMorgan upgraded Oracle from Neutral to Overweight and adjusted its December 2026 price target to $210 from $230. The upgrade reflects the firm’s view that the recent severe selloff has improved the stock’s risk-reward profile against a backdrop of widespread pessimism.
2. Significant Share Decline
Oracle shares have fallen roughly 55% since mid-September, underperforming the broader market. Analyst Mark Murphy pointed out that negative sentiment has lowered expectations, creating a more accessible bar for the company to exceed future targets.
3. $25 Billion Debt Raise Eases Financing Concerns
Oracle’s recent $25 billion debt issuance strengthens its balance sheet and removes the need for additional bond sales in 2026. This sizable capital raise addresses investor worries about financing cloud and AI infrastructure investments.
4. Strong Q3 Financial Performance
In fiscal Q3, total revenue climbed 22% in U.S. dollars (18% constant currency), while pro-forma operating income reached $7.38 billion, topping estimates. Growth was led by a 43.5% increase in cloud revenue, a 243% surge in AI infrastructure sales and a 531% jump in multi-cloud database revenue, driving adjusted EPS of $1.79.