TLDR
- Wedbush raised its Oracle price target to $275 from $225, keeping an Outperform rating
- The firm says the market is misreading Oracle’s heavy capex cycle and undervaluing its AI positioning
- Oppenheimer forecasts Q4 EPS of $1.98 and revenue of $18.9 billion, with cloud revenue growth of 46%–50%
- Oracle’s Q4 earnings are due in June; revenue growth is projected at 19%–21%
- GF Score stands at 91/100, though the stock is flagged as 7.3% overvalued vs. its intrinsic value
Oracle (ORCL) is drawing fresh attention from Wall Street heading into its fiscal Q4 earnings in June, with two analyst firms weighing in on its AI infrastructure story.
Wedbush raised its price target on ORCL to $275 from $225 on May 12, while keeping an Outperform rating. The stock was trading around $186–$187 at the time of the note. That’s a gap worth watching.
The firm’s view is direct: the market is getting the Oracle story wrong. Wedbush argues investors are too focused on the near-term look of Oracle’s heavy, contract-backed capital spending, and not enough on the demand visibility sitting behind it.
Central to that demand is Oracle’s deepening relationship with OpenAI. Wedbush said it is becoming more comfortable with that partnership and more constructive on the broader data center buildout story.
Oracle’s revenue has grown nearly 15% over the last twelve months. Wedbush sees that momentum continuing as the company positions itself to handle the most demanding AI workloads at scale.
What Analysts Expect from Q4
Separately, Oppenheimer released a note projecting strong Q4 performance driven by technology infrastructure spending from clients including OpenAI, Meta, and Nvidia.
Analysts at Oppenheimer forecast Q4 EPS of $1.98 and revenue of $18.9 billion. Cloud revenue is expected to surge 46%–50% year-over-year, with total revenue growth pegged at 19%–21%.
The firm also noted Oracle’s restructuring plan — roughly 30,000 job cuts — as a positive for efficiency and margins going into the earnings print.
Oppenheimer raised its own price target to $235, also citing strong technology infrastructure spending as a driver.
Valuation Picture Is Mixed
Not everything is bullish. GF Value pegs Oracle’s intrinsic value at $169.17, making the current price roughly 7.3% above that figure. On that basis, the stock is flagged as overvalued.
The P/E ratio sits at 32.59x on a trailing twelve-month basis, just above its five-year median of 32.22x. Not a huge premium, but not cheap either.
The GF Score of 91/100 reflects strong profitability (9/10) and growth (10/10) rankings, but more moderate scores on financial strength and momentum — both at 5/10.
Insider activity over the past three months has leaned toward selling, with $2.6 million in stock sold. That’s a data point, not a verdict, but it’s worth noting.
Goldman Sachs analyst Jim Covello has also flagged a preference for hyperscalers like Oracle over chipmakers in AI infrastructure — citing market skepticism already priced into hyperscaler returns.
Oracle is set to report fiscal Q4 earnings in June. Analysts will be watching cloud revenue figures and any updates on contract commitments from major AI clients.
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