Oracle Stock (NYSE:ORCL)
Wolfe Research has expressed optimism that Oracle Corporation (NYSE:ORCL) will be able to deliver optimistic guidance after the market closes on Monday. As a result, the firm has upgraded Oracle stock today.
In particular, the company’s analysts are optimistic about the cloud business, which they anticipate will “become the engine that accelerates top and bottom line growth for the company over the next three years.” The team believes that Oracle) will swiftly gain market share from its small base through the end of 2025, adding to its early mover advantage in Generative AI.
The analysts advised, “The reason we are doing this upgrade before earnings are not because we are making a call on the quarter, but rather we see the potential for a solid 4Q report coupled with AI narrative tailwinds to drive a narrative re-rating from today’s high teens EPS multiple to somewhere closer to the mid-’20s.” “The reason we are doing this upgrade before earnings is not because we are making a call on the quarter,” the analysts said. “We see a top-line beat driven by Cloud’s outperformance, as well as a potential 1Q guide ahead of consensus,” you can read in the statement.
The team concluded that even if they had earlier expressed concern over the development of the cloud company, the “consistently improving tone of our checks has become impossible to ignore,” according to the team. The company also has signed agreements with Microsoft and Nvidia, which adds to its bullishness.
Outperform was the new rating given to the company, and the team has set a price target of $130 for the name. Oracle stock price increased by 4.18% during the premarket session on Monday.
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Author Shariq Khan 
