Citigroup sees Oracle shares more than doubling as sell-off pressures ease

Oracle shares rose 2.84% to close at $148.87 on Wednesday, outperforming a weaker broader market after Citigroup placed the stock on a 90-day positive catalyst watch while maintaining analyst Tyler Radke's Buy rating and $330 price target. The target implies approximately 122% upside from the close, while a newer estimate cited potential gains of 101.52% over the next year, reflecting a different reference price or calculation. Oracle has remained under pressure from credit downgrades, year-to-date declines, rising debt and spending on artificial intelligence infrastructure, but Citigroup said robust demand, accelerating AI adoption, cloud infrastructure pricing and improving margins could support the shares. Oracle remains 56.94% below its 52-week high of $345.72 reached on Sept. 10. Management also highlighted tangible results from its cloud infrastructure platform for major enterprise customers at the Deutsche Bank Technology Conference, helping ease concerns about debt incurred to build AI infrastructure for strategic partners including Microsoft and OpenAI. Oracle's remaining performance obligations previously rose 363% to $638 billion. TipRanks shows a Strong Buy consensus from 28 Buy and four Hold ratings, with an average target of $257.79, implying about 73% upside. Technical indicators point to improving short-term momentum, although the longer-term trend remains weaker, while analysts are watching for potential estimate revisions before Oracle's late-October earnings and investor day.

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