Oracle Boosted to Buy by Oppenheimer with $155 Target After 7.5% Slide
Oppenheimer upgraded Oracle to Buy from Market Perform and set a $155 price target, citing undervaluation versus peers. The upgrade follows a 7.5% drop in Oracle shares over the past month after slowing license sales.
1. Oppenheimer Rating Change
Oppenheimer moved Oracle from Market Perform to Buy and attached a $155 price target, arguing that the stock is undervalued relative to software peers. The firm highlighted steady cloud subscription growth and improving free cash flow as drivers for the new rating.
2. Share Performance Slide
Oracle shares have declined 7.5% over the last month, pressured by slower-than-expected on-premise license sales and broader tech sector weakness. This pullback opened the valuation gap versus competitors, prompting the analyst upgrade.
3. Valuation and Growth Outlook
Analysts point to Oracle’s expanding cloud infrastructure business and recurring software subscription model as long-term growth catalysts. The upgrade suggests investors may view the recent selloff as a buying opportunity ahead of the company’s March quarterly results.