UBS Raises Oracle Price Target 14% to $285 on AI and Cloud Momentum
ORCL•UBS lifted Oracle’s price target to $285 from $250, highlighting robust AI and cloud demand and momentum in its Abilene data center project. The database giant is repositioning as an aggressive AI infrastructure player ahead of Q4 results next week while assessing an $80 billion cash requirement to self-fund growth.
1. UBS Increases Price Target to $285
UBS increased its price target on Oracle to $285 from $250, valuing the company at 27 times projected 2027 non-GAAP EPS and maintaining a Buy rating. The firm cited ongoing strength in AI and cloud services following checks with major customers and a contractor at the Abilene data center project.
2. Shift Toward AI Infrastructure
Oracle’s latest quarter has shifted its narrative from an enterprise software vendor to a leading AI infrastructure provider, driven by expanded data-center investments and partnerships in high-performance computing. The Abilene facility in Texas serves as a flagship project for delivering AI-related computing services.
3. Cash Needs and Fiscal Outlook
Management will report fiscal fourth-quarter results next week, with investors focusing on guidance for fiscal 2027. Oracle plans to allocate approximately $80 billion to sustain its self-funded growth strategy, balancing capital spending on cloud and AI with shareholder returns.
