Oppenheimer Targets $185, Oracle Plans $45–50B Cloud Expansion Funding
Oppenheimer upgraded Oracle to Outperform with a $185 price target, citing fallen valuation multiples and long-term EPS compounding potential from AI initiatives. Oracle plans to raise $45–50 billion in 2026 via equity-linked securities, an at-the-market program and senior unsecured bonds to fund cloud infrastructure expansion.
1. Oppenheimer Upgrade and Valuation
Oppenheimer raised Oracle’s rating to Outperform from Perform and set a $185 price target, noting valuation multiples have fallen by over 50% since last September. The firm highlighted Oracle’s strong EPS growth trajectory and positioned AI adoption as a catalyst once risks become clearer.
2. 2026 Funding Plan
Oracle aims to secure $45–50 billion in 2026 to expand its cloud infrastructure capacity, funding roughly half through equity-linked and common equity issuances—including mandatory convertible preferred securities and a $20 billion at-the-market program—and the remainder via senior unsecured bond offerings.
3. AI Infrastructure Growth and Debt Risks
Investors are tracking Oracle’s ramp-up in AI infrastructure, which has driven higher debt levels as the company partners with OpenAI. The lack of profitability and undefined funding strategies at OpenAI add uncertainty to Oracle’s long-term growth funding requirements.