Oracle Shares Slip 3.1% as Price Target Rises to $290
ORCL•Scotiabank upgraded Oracle to Outperform and raised its price target to $290 from $215 as the stock traded near $244. Oracle secured a deal for Arm’s AI data center chips, but shares slid 3.1% on rising AI infrastructure cost concerns while trading 45.3% above intrinsic value.
1. Analyst Rating and Price Target Hike
On June 2, Scotiabank initiated an Outperform rating on Oracle and boosted its price target to $290 from $215 when the stock was trading around $244.13, reflecting strong confidence in the company’s growth prospects.
2. Strategic AI Chip Partnership
Oracle was named as a customer for Arm Holdings’ AI data center chips, positioning the company at the forefront of the AI infrastructure investment cycle and bolstering its cloud and hardware offerings.
3. Stock Valuation and Insider Activity
Despite positive analyst sentiment and an average brokerage recommendation of 1.48, Oracle’s shares trade roughly 45.3% above an estimated intrinsic value of $170.73, with insiders selling $2.6 million in shares over the past three months.
4. Market Reaction to AI Cost Concerns
Shares declined 3.1% on June 2 as investors weighed escalating AI infrastructure costs ahead of Oracle’s upcoming earnings report, partially reversing the previous day’s rally to multimonth highs.
