Oracle Price Target Raised to $240 with 20% Upside on AI Demand
BAC•Bank of America raised Oracle’s price target to $240 from $200, implying 20% upside, citing accelerating AI and cloud demand following a $50 billion debt and equity raise. Analysts project Q4 revenue of $19.19 billion, up 20% year-over-year, and adjusted EPS of $1.96, marking a 15% gain.
1. BofA Lifts Oracle Price Target to $240
Bank of America Securities raised its target to $240 from $200, maintaining a Buy rating and implying 20% upside based on robust demand for AI and cloud offerings.
2. Q4 Outlook: $19.19B Revenue and $1.96 EPS
Consensus forecasts call for fourth-quarter revenue of $19.19 billion, up approximately 20% year-over-year, and adjusted earnings of $1.96 per share, representing a 15% increase.
3. AI-Fueled Data-Center Expansion
Oracle’s accelerated data-center buildout is expected to support AI training and inference workloads, with growth in Oracle Cloud Infrastructure bolstered by partnerships with major AI players.
4. $50B Debt and Equity Raise Eases Funding Concerns
The company’s recent $50 billion in combined debt and equity financing has improved investor confidence in funding its capital-intensive expansion projects.
